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. 

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.

One of the most important steps to making sure your project qualifies is talking to your contractor at the beginning of the project. 

Keep in mind that 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.

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 to 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 weatherization materials in late 2023 but didn’t have them installed until 2024, you have to file the tax credit with your 2024 tax return.