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Energy Efficient Home Improvement Credit – 26 U.S. Code § 25C

IRA Statuatory Location:


Tax Code Location:

26 U.S. Code § 25C

New or Modified Provision:

Modified and extended. Credit rate increased from 10% to 30%. Eligibility and standards are modified. $500/per taxpayer lifetime limit eliminated and replaced with increased annual limits.

Eligible Recipients:

Homeowners and renters

Tribal Eligibility:



Funded by:

U.S. Department of Treasury


Provides a tax credit for energy-efficiency improvements, home energy audits, and residential energy property, such as qualified home heating and cooling systems.
Direct Pay Eligibility:
No rules
Energy Community Bonus:

Relevant Announcements

Related Resources

Additional information is available on the Resources page.

Key Details

Period of Availability
Tax Mechanism:
Consumer Tax Credit
Base Credit Amount:
30% of cost, with limits for each type of improvement and total per year. 30% up to $150 dollars for a home energy audit. Up to $600 for “energy property,” e.g. efficient heating and cooling equipment; $600 for windows; $250 per door, $500 total for doors; $2,000 for heat pumps. Total annual credit capped at $1,200 per year for all building envelope components. Electric or natural gas heat pump water heaters, electric or natural gas heat pumps, and biomass stoves and biomass boilers have a separate aggregate yearly credit limit of $2,000.
Bonus Credit Amount:
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