25C Tax Credit
The federal Energy Efficient Home Improvement Credit (IRC §25C) providing 30% of the cost of qualifying energy efficiency upgrades: heat pumps ($2,000), insulation ($1,200), HPWH ($2,000), and more.
Why It Matters
The 25C credit resets annually — you can claim up to $3,200/year across all qualifying improvements. It's a dollar-for-dollar reduction in your federal tax liability, not a deduction.
Related Topics
Related Terms
Federal Tax Credit (ITC)
Investment Tax Credit allowing homeowners to deduct a percentage of solar installation costs from federal taxes. Currently 30% through 2032.
30C Tax Credit
The federal Alternative Fuel Vehicle Refueling Property Credit (IRC §30C) providing 30% of the cost of installing EV charging equipment at a residence, up to $1,000.
IRA (Inflation Reduction Act)
Landmark 2022 federal legislation that extended and expanded clean energy tax credits, including the 30% solar ITC through 2032, and added new incentives for batteries, heat pumps, and EVs.