FEDERAL ENERGY EFFICIENT HOME IMPROVEMENT CREDIT (25C)
* EXPIRED *
Federal 25C weatherization tax credits
The deadline to make a credit-eligible upgrade has passed. If you completed a qualifying weatherization project 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:
Jump to section
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 $1,200
Expired Dec. 31, 2025
The 25C tax credit covers weatherization upgrades completed before December 31, 2025. That includes insulation and air sealing, as well as qualifying windows, skylights, and exterior doors that protect your home from the elements, prevent you from wasting energy, and keep your home cool in the summer and warm in the winter.
Which weatherization projects qualify?
The 25C weatherization tax credit covers qualified new insulation, air sealing materials and systems, and exterior doors, windows, and skylights. Materials must be ENERGY STAR and/or IECC certified. The project must have been completed by Dec. 31, 2025.
The 25C tax credit is designed to incentivize high-efficiency equipment. Specifically, your weatherization components, such as insulation, doors, windows, skylights, or air sealing materials must be new and have an expected lifespan of at least five years. Doors, windows, and skylights must meet the ENERGY STAR Most Efficient certification requirements. Insulation and air sealing materials or systems must meet International Energy Conservation Code (IECC) standards.
Efficiency standards and ratings can be difficult to evaluate, so your best bet is to ask your contractor or energy auditor if your project qualifies for the 25C tax credit. Some manufacturer websites list tax credit eligible equipment, as does the ENERGY STAR Product Finder.
For more on the efficiency requirements of other purchases, see this IRS FAQ.
Who qualifies for the 25C weatherization tax credit?
The 25C tax credit can be used by homeowners making upgrades to their primary or secondary home.
Homeowners making upgrades to their primary home
This tax credit only applies to weatherization projects for homes that are already built and used as the primary residence by the taxpayer. Weatherization projects must have been completed by Dec. 31, 2025.
Renters are not eligible. Homeowners cannot use this tax credit for 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 25C weatherization tax credit?
All households who pay federal income taxes are eligible for up to a $1,200 credit for weatherizing their homes, as long as the project was completed by Dec. 31, 2025.
The 25C Energy Efficient Home Improvement Tax Credit provides a tax credit for eligible weatherization projects (up to 30% of project costs, capped at $1,200).
Weatherization upgrades are just some of the home improvements that qualify for the 25C Energy Efficient Home Improvement Credit. Projects like home energy audits, heat pump installations, and electrical panel upgrades qualify as well. All purchases and installations must have been completed by Dec. 31, 2025.
| 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
The 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 Weatherization tax credit may cover up to 30% of your weatherization project costs, capped at $1,200. Labor costs are ineligible.
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 $1,000, but you only owe $500 in federal income taxes that year, you would receive a $500 credit.
Any purchases or installations made after Dec. 31, 2025 are not eligible for the 25C tax incentive.
JUMP RIGHT IN
The credit might be over, but the savings still remain
Missed the end-of-year window? No worries, we can still help you find savings.
Select a project to search contractors
Your home's zip code
Project type
Helpful tools
Personal Electrification Planner
Interested in upgrading your home to all-electric appliances and vehicles? Generate a personalized electrification plan based on your particular home, lifestyle, and priorities — all in just a few minutes.
Incentive Calculator
Find out how much you could save with tax credits and rebates for heat pumps, water heaters, electric vehicles, electric stoves, rooftop solar, wiring upgrades, and energy efficiency improvements to your home.
Weatherization
Ready to say goodbye to cold drafts and hello to year-round comfort? Weatherization can reduce the amount of energy needed to keep your home comfortable.