Energy Efficient Home Improvement Tax Credit (25C) Program

The amended Energy Efficient Home Improvement Credit (25C) begins in 2023 and extends through 2032. It increases the tax credit limits for high-efficiency equipment as follows:

1) Eligible equipment includes:

• Heat pumps and heat pump water heaters
• Energy-efficient HVAC systems (including furnaces, boilers, and central AC)

2) The 25C credit has an annual cap of $1,200 (except heat pump):

• Up to $600 each for a qualified air conditioner or gas furnace, with an annual cap of $1,200
• Up to $2,000 with a qualified heat pump, heat pump water heater, or boiler

Equipment must meet or exceed the highest non-advanced tier set forth by the Consortium for Energy Efficiency (CEE) in your respected North or South Region.

There are no income requirements for this tax credit, and it cannot be combined with other federal programs.

Want to know what qualifies?