Section 25C Energy Efficient Home Improvement Credit (Expired)

Eligibility Requirements

• ✓EXPIRED — No longer available for installations after December 31, 2025
• ✓Was available to U.S. taxpayers who owned the home where improvements were made
• ✓Improvements must have been placed in service by December 31, 2025
• ✓Equipment must have met ENERGY STAR Most Efficient or specific CEE tier requirements
• ✓Credit was claimed on annual tax return using IRS Form 5695
• ✓Was a nonrefundable credit — could only reduce tax owed to $0, not generate a refund
• ✓If you completed work before 12/31/2025, you can STILL claim on your 2025 tax return (due April 2026)

How to Apply

1. 1If you completed qualifying work BEFORE December 31, 2025, you can still claim the credit
2. 2Gather receipts, Manufacturer Certification Statements, and proof of installation dates
3. 3File IRS Form 5695 (Residential Energy Credits) with your 2025 tax return
4. 4Part II of Form 5695 covers the 25C credit — enter qualifying expenditures by category
5. 5Credit is nonrefundable — reduces your tax liability but cannot generate a refund
6. 6For NEW projects in 2026+, use active alternatives: SMUD rebates ($3,000), PG&E rebates ($2,500), or Section 30C for EV chargers

Qualifying Equipment & Services

• ●Heat pumps (HVAC) — was $2,000 annual limit under heat pump sub-cap
• ●Heat pump water heaters — was $2,000 annual limit
• ●Biomass stoves and boilers — was $2,000 annual limit
• ●Central air conditioning — was $600 per item under general $1,200 cap
• ●Insulation and air sealing materials — was under general $1,200 cap
• ●Energy-efficient windows ($600 cap) and doors ($250 each, $500 total)
• ●Electrical panel upgrades for electrification — was $600 under general cap
• ●Home energy audits — was $150 under general cap

Related Services

Frequently Asked Questions