Beginning on 01/01/2023 and extending through 12/31/2025, the Energy Efficient Home Improvement Tax Credit (25C) allows homeowners to claim up to 30% of the costs of energy-efficient upgrades, up to an annual limit of $1,200. Other individual credit limitations include:
- Up to $2,000 for qualifying heat pumps (the one exception to the $1,200 limit)
- Up to $600 for electrical upgrades to enable heat pump installation
- Up to $600 for qualifying air conditioners and furnaces
- Up to $150 for home energy audits
These energy credits are nonrefundable, meaning they allow taxpayers to lower their tax liability, but not to a value below zero.
Consult with your tax professional regarding eligibility.
These energy credits are nonrefundable, meaning they allow taxpayers to lower their tax liability to zero, but not below zero.