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Federal Income Tax Credits for Efficiency Upgrades
The Inflation Reduction Act has introduced an unprecedented suite of direct rebates and tax credits for residential electrification and efficiency (up to $14,000 per home). Tax credits covering 30% of the project costs will be available for qualifying improvements to your primary residence through 2032.
Update: Due to changes introduced in the One Big Beautiful Bill Act (OBBBA), many of these clean energy tax credits, including those for home improvements and electric vehicles, are currently scheduled to expire after December 31, 2025. The EV tax credit is set to expire earlier, on September 30, 2025.
To explore what’s currently available, visit the U.S Department of Energy’s Energy Savings Hub for the most up-to-date information on tax credits and rebates.
| Equipment | You can claim (%) | Max. Amount Credited | More Info | Note | Expires |
|---|---|---|---|---|---|
| Air Source Heat Pump | 30% | $2,000 | Tax Credit Information | Ducted: EER2 > 10 Ductless (mini-splits): SEER2 > 16, EER2 > 9, HSPF2 > 9.5 | 12/31/25 |
| Heat Pump Water Heaters | 30% | $2,000 | Tax Credit Information | Must be ENERGY STAR certified | 12/31/25 |
| Biomass Stoves/Boilers | 30% | $2,000 | Tax Credit Information | Must have a thermal efficiency rating of at least 75%. | 12/31/25 |
| Windows & Skylights | 30% | $600 | Tax Credit Information | Must meet the Energy Star Most Efficient criteria to be eligible. | 12/31/25 |
| Exterior Doors | 30% | $500 ($250/door) | Tax Credit Information | Must meet the Energy Star Most Efficient criteria to be eligible. | 12/31/25 |
| Insulation | 30% | $1,200 | Tax Credit Information | Typical bulk insulation products can qualify, such as batts, rolls, blow-in fibers, rigid boards, expanding spray, and pour-in-place. Products that air seal (reduce air leaks) can also qualify, as long as they come with a Manufacturers Certification Statement, including:
| 12/31/25 |
| Water Heaters (Natural Gas, Oil, Propane) | 30% | $600 | Tax Credit Information | Gas > 0.81 UEF for tanks less than 55 gallons and >0.86 for tanks greater than or equal to 55 gallons. Tankless Gas >0.95 UEF | 12/31/25 |
| Furnaces | 30% | $600 | Tax Credit Information | Gas furnace with AFUE >97%, Oil Furnace, fuel blends at least 20% of the volume of which consists of biodiesel, renewable diesel, or second generation biofuel. Must be an existing home & your principal residence. New construction and rentals do not apply. | 12/31/25 |
| Boilers | 30% | $600 | Tax Credit Information | ENERGY STAR certified gas boilers with AFUE > 95% are eligible. | 12/31/25 |
| Central Air Conditioners | 30% | $600 | Tax Credit Information | SEER2 > 16 is eligible | 12/31/25 |
| Electric Panel Upgrade | 30% | $600 | Tax Credit Information | Any improvement to, or replacement of, a panelboard, sub-panelboard, branch circuits, or feeders. Load capacity =>200 amps and in conjunction with additional energy efficiency improvements . | 12/31/25 |
| Home Energy Audit | 30% | $150 | Tax Credit Information | Must be conducted and prepared by a certified home energy auditor. TCEC home energy evaluations are not eligible for this tax credit. | 12/31/25 |
| Geothermal Heat Pumps | 30% | ------------ | Tax Credit Information | Must be Energy Star certified | 12/31/25 |
| Small Wind Turbines | 30% | ------------ | Tax Credit Information | Residential | 12/31/25 |
| Solar Energy Systems | 30% | ------------- | Tax Credit Information | Includes solar water heaters and solar panels. Must provide electricity to residence. | 12/31/25 |
| Fuel Cells | 30% | $500/ half (kW) of power capacity | Tax Credit Information | Nameplate capacity of at least 0.5 kW of electricity using an electrochemical process and an electricity-only generation efficiency greater than 30%. | 12/31/25 |
| Battery Storage Technology | 30% | Tax Credit Information | Must have a capacity of not less than 3 kilowatt hours. | 12/31/25 | |
| EV Tax Credit | 30% | Varies | More Information | Income limits and final assemply in North America | 09/30/25 |
| EV Charger Credit | Up to $7,500 | Varies | Must be in qualifying census tract | 06/30/26 | |
| HOMES/High-Efficiency Rebates | N/A | Up to $14,000 | More Information | Based on whole-home energy savings and income qualifications | Not affected by OBBBA |
| Clean Energy Project Credits | Varies | _______ | Solar, wind, geothermal, etc. phased out unless construction begins by mid-2026 | Mid-2026 |