Can I Claim the Energy Efficient Home Improvement Credit?

Yes — the Energy Efficient Home Improvement Credit (Section 25C) provides up to $3,200 per year in tax credits for qualifying home improvements on your primary residence. You can claim 30% of the cost of qualifying insulation, windows and doors (up to $600), heat pumps or heat pump water heaters (up to $2,000), and qualifying furnaces or AC units (up to $600). The credit resets each year — so you can claim it again next year for different improvements. Eligible improvements must meet current energy efficiency standards set by the IRS. Keep your product specifications and receipts, and fill out Form 5695 to claim the credit. This credit does not carry over if it exceeds your tax liability.