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Home Energy Efficiency Tax Credits

The 25C energy-efficient home improvement credit covers 30% of qualifying upgrades, with specific annual caps per item type.

Katie Gorles
Written by
Katie Gorles
Updated April 22, 2026

What qualifies

Insulation, air sealing materials, energy-efficient windows, doors, skylights, heat pumps, heat pump water heaters, central air conditioners, natural gas/propane/oil water heaters and furnaces that meet efficiency standards.

Annual limits

$1,200 annual credit cap most items. $2,000 for heat pumps and heat pump water heaters (separate bucket). $500 for doors ($250 per door). $600 for windows. $150 for home energy audit.

Have a specific situation?
Call the office and a human answers.

Common questions

Can I claim this every year?
Yes. The 25C credit has annual limits, not lifetime, you can claim it in multiple years for different projects.

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