Federal Energy Efficient Home Improvement Tax Credit (25C)
U.S. Internal Revenue Service (IRS), Inflation Reduction Act
About This Program
Note: Congress ended this federal tax credit for installations after December 31, 2025. Projects placed in service by that date can still be claimed on your 2025 federal return (IRS Form 5695).
The IRS Section 25C tax credit provides 30% of qualifying upgrade costs each year, up to $3,200 annually ($1,200 for insulation, windows, doors, and audits; $2,000 for heat pumps and water heaters). Unlike a deduction, this directly reduces federal income tax owed. The credit resets each tax year for installations completed by December 31, 2025, allowing multiple years of improvements to capture the full benefit.
30% of upgrade cost, up to $3,200/year. A $10,667 in upgrades per year captures the full $3,200 credit. Stacks with Xcel and HEAR rebates (rebates reduce the cost basis before calculating the credit).
The cited general URL responded on 2026-07-21; it does not confirm this program or amount.
Record set last reviewed 2026-04-03. How we verify our data.
This is a national program. You can also review these local programs in Denver, CO; confirm separately whether they can coordinate:
Key Details
- 30% of qualifying upgrade costs, directly reduces federal taxes owed
- Up to $1,200/year for insulation, windows, doors, energy audits
- Up to $2,000/year for heat pumps or heat pump water heaters
- Credit resets every tax year for installations completed by December 31, 2025
- Stacks with Xcel rebates and HEAR rebates, consult a tax professional
How to Apply
Some programs require contractor estimates, licenses, or inspections. A cited link may be general, so confirm the current rules with the administrator before hiring; a directory match does not guarantee contractor eligibility or funding.
You may need a contractor or estimate
Some programs for this project type ask for a license, inspection, or written estimate. Confirm the rule before contacting a contractor in Denver.
Get matched with a contractorEach administrator sets its contractor rules. Confirm exact requirements directly; the cited URL may be a general agency page.
Your application paperwork
Documents you will likely need
- Your federal tax return for the year of the work (this benefit is claimed on your taxes, not through a separate application).
- Proof you own and live in the home (deed, recent mortgage statement, or property tax bill).
- A government-issued photo ID for every owner on title.
- A written estimate from a licensed contractor for the work (many programs require this to apply).
- A recent utility bill for the home (energy and weatherization programs use it to confirm service and usage).
- The program's own application form, completed (use the official link or phone number on this page).
Requirements vary by program and locality. Confirm the exact rules and application route with the administrator. We can help you prepare your paperwork, but you submit it yourself.
Deadline: Ended December 31, 2025 (federal law change)
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More ways to save on this project
Rebates and discounts that may reduce project cost. Confirm eligibility and coordination rules before including one in your budget.
Find More Programs in Denver, CO
This is one of several kinds of assistance that may be available. Review other programs separately and confirm whether their administrators allow coordination for the same work.
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