Federal Energy Efficient Home Improvement Credit (25C)
EndedVerified · irs.gov
Was 30% of cost, up to $2,000 a year for heat pumps and heat pump water heaters (plus up to $1,200 for other items, including up to $600 for a panel). Not allowed for property placed in service after December 31, 2025.
This program ended on Dec 31, 2025 (Note)Only for equipment placed in service by December 31, 2025: file IRS Form 5695 Part II with your 2025 return. See what is still open.
How much
Nothing for new projects. The source does not give a fixed amount we can add up, so the finder shows it without a number.
Who qualifies
- Where: United States.
- Upgrades: Heat pump, Heat pump water heater, Electrical panel, Insulation and air sealing.
Ended by Public Law 119-21 (signed July 4, 2025). Equipment placed in service in 2025 is still claimed on the 2025 return with Form 5695; 2025 items need a qualified manufacturer identification number.
How to apply
- Only for equipment placed in service by December 31, 2025: file IRS Form 5695 Part II with your 2025 return.
- Nothing to apply for on 2026 installs.
You file it yourself.
Sources
- Official program page (opens in a new tab), checked Oct 8, 2026.
- IRS FAQs on Public Law 119-21 (One Big Beautiful Bill) changes to 25C, 25D and 30C (opens in a new tab), accessed Oct 8, 2026.
Often stacked with
- Open
Colorado Heat Pump Tax Credit (State of Colorado Heat Pump Discount)
Colorado Energy Office and Colorado Department of Revenue