Homeowners and renters making upgrades to their existing home

Renters and homeowners can use this tax credit for electrical panels in homes that are already built. Homeowners can use this tax credit for primary and secondary homes.

Landlords can never claim this credit for homes they rent out but do not use as a residence themselves.

For more information, see Frequently asked questions about energy efficient home improvements and residential clean energy property credits.

To learn about credits for new homes, see Section 45L New Energy Efficient Home Credit, which offers incentives for  Zero Energy Ready homes. 

No income requirements 

There are no income limitations for the 25C Tax Credit — but like nearly all federal tax credits, you can only use it if you pay federal income taxes.

Qualifying electrical panels must meet the standards of the National Electric Code (NEC) and have a capacity of 200 Amps or more. This means that your new/upgraded panel must be able to serve a load of at least 200 Amps, but you don't need 200 Amps of incoming utility service. Smart panels may qualify if they allow you to serve a load of 200 Amps.

For more on the efficiency requirements of other purchases, see this IRS FAQ.

1. Keep track of (or track down) the invoice from your contractor. 

2. Fill out IRS Form 5695, Residential Energy Credits. For instructions on how to fill out the form, including more in-depth information about individual amounts you can claim, see the IRS’s Instructions for Form 5695.

3. Submit the form along with your annual tax return. 

4. You may enjoy a lower tax bill or bigger refund!

You can claim the standard deduction and claim the 25C tax credit. You don't have to itemize.

You can only apply for and claim the 25C tax credit for energy upgrades in the year in which a project is completed. For example: if you purchased your equipment in late 2023 but didn’t have it installed until 2024, you have to file the tax credit with your 2024 tax return.