Energy Efficient Home Improvement Credit

Last updated: October 12, 2026

Bottom line: The federal Energy Efficient Home Improvement Credit, also called Section 25C, ended for property placed in service after December 31, 2025. A new heat pump, furnace, window, or insulation job finished in 2026 does not qualify. But if you had qualifying work done in 2025, you may still be able to claim the credit on your 2025 tax return or amend a return you filed.

This was a nonrefundable federal tax credit, not a home repair grant. It could cut income tax you owed. It did not pay your contractor or give you extra cash beyond the tax you owed.

If you plan work now, first check state energy rebates, your utility, or a program that does the work for eligible homes. The best path depends on your home, income, and the repair.

Find Your Next Step

When Did the Federal Credit End?

The IRS law change guide says Section 25C cannot be claimed for property placed in service after December 31, 2025. This rule was set by a federal law passed in July 2025. Older pages that say the credit runs through 2032 are out of date.

Placed in service means the work was installed and ready to use. A quote, deposit, signed deal, or item delivered in 2025 is not enough if the system was not ready until 2026. Keep proof of the finish date if it is close to the cutoff.

The credit had no loan payments, lien, or interest. It was not a refund of the full bill. If you owed no federal income tax after other credits, it might give you no benefit. Any unused Section 25C credit could not be carried to a later year.

Do not mix this up with the separate Residential Clean Energy Credit, or Section 25D, for items such as solar panels and home batteries. The IRS clean energy rules say that credit also ended, but its legal cutoff is tied to expenditures after December 31, 2025. The two credits have different rules.

What Could the 2025 Credit Pay For?

For eligible 2025 work, the credit was often 30% of the allowed cost. The most a person could claim across the two main groups was $3,200 for the year. This was a limit, not an amount each home would get. See the IRS credit overview for the product rules.

The first six rows share a $1,200 total annual limit, with the lower item caps shown. Heat pumps and biomass items share a separate $2,000 limit. The same item cannot get a fresh limit just because you use two contractors.

Example: A home with an eligible heat pump might qualify for up to $2,000. It might also qualify for part of the $1,200 group if other work met the rules. But the actual credit still depends on allowed costs and federal tax owed.

Not every efficient product passed the tests. Doors, windows, heating systems, and other items had set product standards. A basic ENERGY STAR mark did not always prove that a product passed the rule for this credit.

Who Could Claim It for 2025?

There was no general income cap for Section 25C. The key tests were the home, the work, the year, and your federal tax bill. New homes and work done for a landlord who did not live in the home did not fit the usual rules.

• Doors, windows, and insulation: The home had to be an existing main home in the United States that you owned and lived in. The new materials had to meet the 2025 rules.
• Heating, cooling, and some panel work: These rules could cover a home you used as a residence, even when it was not your main home. Ownership and renter cases need an item-by-item check.
• Energy audit: You needed an inspection and written report for your main home from a person who met the federal auditor rules.
• New construction: Equipment added as part of building a new house did not count under Section 25C.

If part of the home was used for business, the tax result could change. The same goes for people who shared costs, such as unmarried co-owners. The IRS made a joint-occupant correction to its 2025 form guide. Each person should check the current form rules before claiming a share.

How to Claim a 2025 Credit

Know the filing and amendment dates

For most people, the normal due date for the 2025 return was April 15, 2026. If you got a valid extension, the usual extended date is October 15, 2026. An extension to file was not extra time to pay tax.

Some people, such as those in certain disaster areas, may have different dates. Check the IRS extension guide.

If you already filed, you may be able to add the credit with Form 1040-X. The IRS amended return guide says a refund claim is often due within three years of filing the first return or two years after paying the tax, whichever is later. Special rules may apply. Do not wait just because three years sounds like a long time.

Need help with the form? The IRS free tax help programs serve many people with low income, disabilities, or age 60 and up. Ask if the site handles Form 5695 or amended returns before making a trip.

Keep the Right Records and QMID

The qualified manufacturer identification number, or QMID, is a four-character code used for set products placed in service in 2025. It was required for many doors, windows, skylights, heat pumps, heaters, and other covered equipment. The full 17-character product PIN was not needed for these 2025 claims.

You did not need a QMID for insulation, air sealing, or a home energy audit. You still needed proof that the work passed the rules. Look up the maker on the IRS qualified maker list. A maker being listed does not mean all its products qualify.

Keep one folder with the final bill, paid receipt, finish date, make and model, maker’s statement, QMID if needed, and rebate notices. For an audit, keep the full written report and the auditor’s details. If you shared costs, keep proof of who paid each part.

Some subsidies and rebates lower the amount you can count. Some subsidized energy loans can also change the tax cost. Do not use the full sale price without checking what was paid after the required cuts. If a contractor’s tax claim seems too good to be true, ask a tax preparer to check it.

What Help Is Available for 2026 Work?

The old federal tax credit is closed for new work, but help may still come from other places. Check before you buy. Many programs want you to apply first or use an approved installer. Some have a waitlist or no funds left in your area.

Home Energy Rebates

Type: A rebate, not a tax credit or a loan. The U.S. Department of Energy says Home Energy Rebates are active in select states. State, Tribal, and territory offices set the local steps.

The whole-home program may pay up to $8,000 for some projects tied to energy savings. The electric appliance program may allow up to $14,000 across several set items. The ENERGY STAR rebate rules list up to $8,000 for an eligible heat pump, $1,750 for a heat pump water heater, $1,600 for insulation, $4,000 for panel work, and $2,500 for wiring. Some cooking items and heat pump dryers may get up to $840.

These are maximum program caps, not amounts you are sure to get. The electric rebate path is aimed at homes below 150% of area median income. Homes below 80% may have a larger share of costs covered.

A state may offer fewer items or tighter rules. Ask its energy office if funding is open at your address.

Weatherization Assistance Program

Type: Direct work on the home, not a cash check. The Weatherization Assistance Program (WAP) may provide an energy check, insulation, air sealing, and selected heating or safety work. It will not pay for every repair you choose.

The DOE weatherization steps say homes at or below 200% of the federal poverty guidelines or getting Supplemental Security Income may meet a federal income route. States may use approved LIHEAP rules too. Older adults, people with disabilities, and high-bill homes may get priority. Renters may apply, but owner consent may be needed.

Call the state office, then the local intake group. Ask if it is taking names and what income proof it needs. Our weatherization application guide explains how the local process works.

LIHEAP and urgent energy help

Type: Heating or cooling bill aid, crisis aid, and, in some areas, minor energy-related repair work. The Low Income Home Energy Assistance Program (LIHEAP) is not a general home repair fund. Each state or Tribe sets its own income rules and local services.

Find your office in the LIHEAP state directory. For repair needs, see our LIHEAP crisis repair guide. If you face a shutoff, ask the office about crisis intake and what proof it needs.

Utility rebates and local repair aid

Type: A rebate, discount, direct work, or a local loan or grant. Start with the ENERGY STAR rebate finder, then check your electric or gas utility. Ask if you must use a set contractor and if you can use two rebates on one job.

City, county, and nonprofit programs may help with unsafe heat, wiring, or other home needs. A loan must be paid back. Some deferred or forgivable loans use a lien and may become due if you sell or move. Use our local repair program finder and rural repair help guide to find better matches.

For money or debt concerns, talk with a HUD-approved housing counselor. Call 800-569-4287 or use the HUD counselor search. For a local aid referral, call 211 or use the 211 help network. Neither service can promise funds.

Mistakes and Scams to Avoid

• Wrong year: A 2025 deposit does not turn 2026 work into a 2025 claim.
• Wrong proof: A model number is not the same as a required QMID.
• Wrong costs: Do not count fitting labor for windows or insulation.
• Wrong rebate plan: Starting work before approval can block a 2026 rebate.
• Wrong promise: A maker or installer cannot promise you a tax credit or a refund.

What to Do Next

If local aid says no, ask why, when the next funding round opens, and whether there is a way to appeal. Our denied assistance guide shows what to ask next.

Frequently Asked Questions