Federal Energy Efficient Home Improvement Credit (25C)

U.S. Internal Revenue Service (IRS)

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).

Homeowners can claim a 30% annual federal tax credit up to $3,200 per year for qualified energy-efficiency improvements including insulation, exterior windows and doors, heat pumps, biomass stoves, electric panel upgrades, and home energy audits. Annual caps: $1,200 general limit, $600 windows, $500 doors, $2,000 heat pumps/biomass. No lifetime cap, the credit resets each tax year. Available through December 31, 2025 under current law.

Example: $10,000 heat pump = $2,000 credit. $2,000 insulation + $6,000 windows = $600 + $600 = $1,200 credit.

Verified against U.S. Internal Revenue Service (IRS)'s official page on 2026-06-17.

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

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

Key Details

  • 30% credit, up to $1,200/year general; up to $2,000 for heat pumps or biomass stoves
  • Covers insulation, windows ($600 cap), doors ($500 cap), HVAC, heat pumps, panel upgrades, energy audits
  • No lifetime cap, credit resets annually
  • Must be primary residence; claim on IRS Form 5695
  • Valid through December 31, 2025 under current law

How to Apply

Get free help applying Visit Official Program Page Track this program

800-829-1040

A grant-savvy contractor in Houston, TX 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 Houston 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)

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