FEDERAL ENERGY EFFICIENT HOME IMPROVEMENT CREDIT (25C)
* EXPIRED *
Federal electrical panel tax credits
The deadline to make a credit-eligible upgrade has passed. If you installed a qualifying electrical panel and completed other upgrades to improve home energy efficiency by December 31, 2025, read on for how to apply this credit when you file your taxes in 2026.
View other eligible projects under this tax credit:
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Introduction
Introduction
Disclaimer: The information presented here is for educational purposes only. It is not intended to provide specific tax guidance. For questions regarding your individual tax situation, we suggest consulting with your tax advisor.
Tax Credit
Up to $600
Expired Dec. 31, 2025
Which electrical panels qualify?
Electrical panels must meet a few requirements to qualify.
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.
Who qualifies for the electrical panel tax credit?
The 25C tax credit can be used by renters and homeowners who made upgrades to their primary or secondary home by the end-of-year deadline.
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.
What is the electrical panel tax credit?
All households who pay federal income taxes are eligible for up to $600 in tax credits for the installation of a qualifying electrical panel, as long as purchase and installation were completed by Dec. 31, 2025.
The 25C Energy Efficient Home Improvement Tax Credit provides a tax credit for eligible electrical panels (up to 30% of project costs, capped at $600) when the panel enables the use of a qualified heat pump or heat pump water heater.
The deadline to use 25C tax credits for purchasing and installing electrical panels, heat pumps, and heat pump water heaters was Dec. 31, 2025.
Electrical panels are just one of the home improvements that may qualify for the 25C Energy Efficient Home Improvement Credit. Projects like heat pumps, heat pump water heaters, and insulation may also qualify.
| Project type | How much funding can you receive from 25C for qualifying projects? |
|---|---|
| Project type:Electrical components | How much funding can you receive from 25C for qualifying projects?: Up to 30 percent, generally capped at $600 per year, for the items listed below:
|
| Project type:Heat pumps and heat pump water heaters | How much funding can you receive from 25C for qualifying projects?: Up to 30 percent, capped at $2,000 per year for qualified:
|
| Project type:Weatherization (insulation, air sealing, and ventilation) | How much funding can you receive from 25C for qualifying projects?: Up to 30 percent, capped at the following amounts for each type of project:
All weatherization projects are combined with electrical panel upgrades for a total project cap of $1,200 per year. |
| Project type:Home energy audit | How much funding can you receive from 25C for qualifying projects?:Up to $150. Home energy audits must be performed by a certified home energy auditor, and include a full home inspection and report to qualify. |
Source: IRS
As noted above, all weatherization projects are combined with electrical panel upgrades for a total project cap of $1,200 per year. This means that, for example, you could claim $600 on a subpanel to enable a heat pump to be installed, and also claim $600 towards insulation.
25C Energy Efficient Home Improvement Credit is limited to $2,000 per year for heat pump water heater installations, and there is a $3,200 yearly cap for all 25C tax credits combined. All 25C tax credits expired on Dec. 31, 2025.
Tax credit limitations
The 25C Heat Pump tax credit may cover up to 30% of your electrical panel project costs, capped at $600.
Generally, you must subtract any price adjustments from the cost of the item. This can mean rebates, utility subsidies, financial incentives, and anything else that lowers the price point. This part can get a little tricky, so be sure to check the Frequently asked questions about energy efficient home improvements and residential clean energy property credits for more information.
The 25C tax credit is “non-refundable,” which means that you can't get back more than you pay in federal income taxes.
If 30% of your project’s cost is $600, but you only owe $300 in federal income taxes that year, you would receive a $300 credit.
Remember: Any purchases or installations made after Dec. 31, 2025 will not be eligible for the 25C tax credit.
| 25C electrical panel upgrade combinations | Maximum tax credit cap per year |
|---|---|
| 25C electrical panel upgrade combinations:Electrical panel + weatherization projects | Maximum tax credit cap per year:$1,200 |
| 25C electrical panel upgrade combinations:Electrical panel + heat pump air conditioner/heaters | Maximum tax credit cap per year:$2,600 |
| 25C electrical panel upgrade combinations:Electrical panel + heat pump water heaters | Maximum tax credit cap per year:$2,600 |
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