IRS Energy Efficient Home Improvement Credit (25C)

Internal Revenue Service

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 Section 25C tax credit allows homeowners to claim 30% of the cost of qualifying energy-efficient home improvements, up to $3,200 per year. The $1,200 annual cap covers insulation, air sealing, windows, exterior doors, and energy audits; a separate $2,000 annual cap applies to heat pumps, heat pump water heaters, and biomass stoves. There is no lifetime limit, you can claim the maximums each year. Note: the credit was set to expire December 31, 2025 under current law; confirm current status before filing.

No income limit; claim on IRS Form 5695 with federal tax return for year of installation; 30% of cost up to annual caps; qualified manufacturer certification may be required

Verified against Internal Revenue Service's official page on 2026-06-17.

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

This is a national program. In San Diego, CA, you can stack it with local programs like these:

Key Details

  • 30% tax credit on qualifying energy-efficient improvements, no income limit
  • $1,200/year cap for insulation, windows, doors, energy audits
  • Additional $2,000/year cap for heat pumps, heat pump water heaters, biomass
  • File IRS Form 5695 with your tax return for the year of installation
  • Confirm current status, credit was set to expire December 31, 2025

How to Apply

Get free help applying Visit Official Program Page Track this program

1-800-829-1040

A grant-savvy contractor in San Diego, CA 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 San Diego 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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