Energy-Efficient Home Improvement Tax Credit (25C): Key Takeaways
• A 10-year extension and expansion of existing 10% tax credit to 30%.
• Begins with tax year 2023 (January 1, 2023), claim credit on your 2023 taxes.
• Up to $600 maximum per item: breaker panel, insulation, fossil fuel systems
(meeting elevated efficiency limits) with maximum of $1,200 tax credit.
• However, tax credit increases up to $2,000 for buying and installing qualified
- The heat pump system must meet or exceed the
highest performance tier set by the Consortium for
Energy Efficiency (CEE).
• Households may claim annually through 2032