2025 Clean Energy & Home Efficiency Tax Credits

If you’ve made energy-efficient upgrades to your home or plan to in 2025, you may qualify for valuable tax credits. Under the Inflation Reduction Act, the IRS has extended and expanded credits for energy-saving home improvements through 2032.

Energy Efficient Home Improvement Credit

This credit allows homeowners to claim up to $3,200 annually for qualified improvements made after January 1, 2023. For 2025, the credit remains available for a wide range of projects:

• Up to $1,200 total per year for:
  
  
  • Insulation, doors, and windows
  
  
  • Energy audits (up to $150)
  
  
  • Electrical panel upgrades (up to $600)
  
  
  

• Up to $2,000 annually for:
  
  
  • Heat pumps, heat pump water heaters, biomass stoves, or boilers
  
  
  

Each component has its own limit, but the combined max is capped at $3,200 per year.

What Qualifies?

Projects must meet specific energy efficiency criteria and be installed in a taxpayer’s primary residence located in the U.S. Qualified products must be ENERGY STAR certified or meet Department of Energy requirements.

Planning Tip

Keep all receipts and product documentation to claim this credit on your return. Spread out upgrades over multiple years to maximize credit value.

Other Related Credits

• Residential Clean Energy Credit (30% credit): For solar panels, battery storage, wind, and geothermal systems — no annual dollar limit.

• Clean Vehicle Credit: Up to $7,500 for new EVs and $4,000 for used EVs (if income and vehicle qualify).

Want to find out which upgrades qualify and how to claim them? Schedule a consultation to walk through your 2025 eligibility.

Source: IRS – Energy Efficient Home Improvement Credit