Federal Energy Efficient Home Improvement Tax Credit (25C)

U.S. Internal Revenue Service (IRS), Inflation Reduction Act

Closed Home Repair

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 IRS Section 25C tax credit provides 30% of qualifying upgrade costs each year, up to $3,200 annually ($1,200 for insulation, windows, doors, and audits; $2,000 for heat pumps and water heaters). Unlike a deduction, this directly reduces federal income tax owed. The credit resets each tax year for installations completed by December 31, 2025, allowing multiple years of improvements to capture the full benefit.

30% of upgrade cost, up to $3,200/year. A $10,667 in upgrades per year captures the full $3,200 credit. Stacks with Xcel and HEAR rebates (rebates reduce the cost basis before calculating the credit).

Official source site checked live on 2026-06-22.

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

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

Key Details

  • 30% of qualifying upgrade costs, directly reduces federal taxes owed
  • Up to $1,200/year for insulation, windows, doors, energy audits
  • Up to $2,000/year for heat pumps or heat pump water heaters
  • Credit resets every tax year for installations completed by December 31, 2025
  • Stacks with Xcel rebates and HEAR rebates, consult a tax professional

How to Apply

Get free help applying Visit Official Program Page Track this program

A grant-savvy contractor in Denver, CO 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 Denver early keeps your application moving.

Get matched with a contractor

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)

Questions about this program?

Ask us. It is free, and a real person answers within a business day.

Email us about this program

Need a Contractor for This Grant?

Grant-approved contractors understand the documentation, inspections, and timelines, so your funding releases on schedule.

Get matched with a pro, free Browse Denver, CO contractors

Find More Programs in Denver, CO

This is just one of many grants, rebates, and free programs available. Stack them together to maximize your savings.

See All Programs