Federal Energy Efficient Home Improvement Tax Credit (25C)

IRS / U.S. Department of Energy

Closed Energy Assistance

About This Program

Note: Congress ended this federal tax credit for installations after December 31, 2025. Projects placed in service by that date can still be claimed on your 2025 federal return (IRS Form 5695).

The federal Section 25C tax credit provides 30% of costs for qualifying energy-efficient home improvements, up to $3,200 per year. Sub-limits apply: $600 for windows/skylights, $500 for exterior doors, $150 for home energy audits, and $2,000 for qualified heat pumps and heat pump water heaters. Credits are non-refundable but can be claimed annually for installations completed by December 31, 2025.

30% of qualifying costs up to annual sub-limits. Non-refundable, requires federal tax liability to benefit. $2,000 sub-limit for heat pumps; $600 for windows; $150 for energy audits.

Verified against IRS / U.S. Department of Energy's official page on 2026-06-17.

Data last verified 2026-04-03. How we verify our data.

This is a national program. In Albuquerque, NM, you can stack it with local programs like these:

Key Details

  • 30% tax credit on qualifying energy improvements; $3,200 annual maximum
  • $2,000 sub-limit for heat pumps and heat pump water heaters
  • $600 sub-limit for windows; $150 for home energy audits
  • Available annually for installations completed by December 31, 2025
  • Non-refundable, must have federal tax liability to claim

How to Apply

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A grant-savvy contractor in Albuquerque, NM can handle the paperwork, inspections, and timelines so your funding releases on schedule. Getting matched is free.

You will likely need a contractor to apply

Projects like this almost always need a licensed contractor, and many grants ask for a written estimate as part of your application. Lining up a contractor in Albuquerque early keeps your application moving.

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Each program sets its own contractor rules. Check the official program page for exact requirements.

Your application paperwork

Documents you will likely need

  • Your federal tax return for the year of the work (this benefit is claimed on your taxes, not through a separate application).
  • Proof you own and live in the home (deed, recent mortgage statement, or property tax bill).
  • A government-issued photo ID for every owner on title.
  • A written estimate from a licensed contractor for the work (many programs require this to apply).
  • A recent utility bill for the home (energy and weatherization programs use it to confirm service and usage).
  • The program's own application form, completed (use the official link or phone number on this page).
Download this checklist (PDF)

Requirements vary by program and locality. Confirm the exact rules on the official program page. We can help you prepare your paperwork, but you submit it yourself.

Deadline: Ended December 31, 2025 (federal law change)

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