Home Energy Tax Credits and Rebates Guide
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When you file this year, it’s especially important to reap the benefits of your household’s energy-efficiency.
Legislation passed in 2022 introduced energy- and tax-related credits that began in the 2023 tax year and are still in effect today. Because of that, we’ve put together a list of common home improvement and renewable energy tax credits that may help you save money on your 2025 tax return. We’ve also included information on rebates available for energy-efficient appliance purchases to help you save money if you need or want to use your tax savings on energy-efficient appliances.
Table of Contents:
- Claiming Federal Energy Tax Credits
- Tax Credits for Roofs
- Solar Tax Credits
- Tax Credits for Windows, Doors and Skylights
- Tax Credits for Insulation
- Tax Credits for Biomass Stoves
- A/C Tax Credits
- Tax Credits for Non-Solar Water Heaters
- Tax Credits for Electric Vehicles and Home Chargers
- Tax Credits for Geothermal Heat Pumps
- Tax Credits for Wind Turbines
- What Are Rebates for Energy-Efficient Appliances?
How Do Energy Tax Credits Work for Homeowners?
To help provide incentives for homeowners to make energy-efficiency home improvements, the federal government offers tax credits as a way to offset the costs of these repairs/changes. This is not cash in your hand (like a rebate which gives you cash back after you’ve made a purchase), but a credit you can claim on your annual tax return that may reduce the federal taxes you pay as a homeowner. For 2025, the tax code remains focused on providing incentives for homeowners to make the move to renewable energy sources, such as the IRS solar tax credit.
Note: Tax credits for home improvements that expired in 2017 were retroactively extended through December 31, 2022. Those currently in place for 2023 were extended through 2032 through the Inflation Reduction Act of 2022, but subsequent legislation has made them unavailable after 2025.
Claiming Federal Energy Tax Credits
You’ll need to file a specific IRS form with your annual federal income tax return to get a federal energy tax credit. If you’ve made qualifying energy-efficient home improvements this year, fill out IRS Form 5695 - Residential Energy Credits. Here are links to download the forms:
How to Claim the Energy Efficient Home Improvement Credit
You may be able to claim 30% of the cost of improvements that increase the energy efficiency of your home. To qualify for the Energy Efficient Home Improvement Credit (Section 25C), you must make improvements to windows, skylights and other parts of the exterior structure. The program is limited to a maximum of $1,200 in the year the improvement was installed, with a cap of $600 for windows.
You can only claim the credit for improvements to your primary U.S. residence, and you can’t claim it on new constructions. The credit is calculated based on the cost of materials only and doesn’t include labor costs for installation. To qualify, products must be made by a registered manufacturer that has a Qualified Manufacturer Identification Number (QMID). Make sure to get a copy of the manufacturer's certification statement indicating that its products meet ENERGY STAR® Most Efficient standards and keep it in your files along with your purchase receipt. To be eligible, products must also meet specific energy-efficiency performance requirements for your climate zone. You can verify if your upgrade qualifies by checking its Certified Products Directory number.
Claiming the credit is easy. Just fill in IRS Form 5695 for the year you made the energy efficiency improvement and file it along with your federal tax return. You don’t need to submit supporting documentation, as having the QMID code is enough. Note that you can’t apply excess credits to future tax years, and you can’t get back more credit than you owe in taxes.
How to Claim the Residential Clean Energy Credit
Installing new windows, doors and skylights is not the only way to claim a tax credit. You can claim a credit of up to 30% of the cost of installing a clean energy system in your home through the Residential Clean Energy Credit (Section 25D) program. Technologies such as solar electric systems, solar water heaters, geothermal heat pumps, onsite wind turbines, battery storage systems exceeding 3 kWh in size and fuel cells may qualify for this tax credit.
Unlike the Energy Efficient Home Improvement Credit, this program has no annual limits and includes labor costs. You can only claim up to your annual federal income tax liability, but you can carry the credit forward to offset taxes in future years. Another benefit is that the program applies to both primary and secondary homes, with the exception of fuel cells. To qualify, your system needs to be new and meet certification standards. The credit applies to systems installed before January 1, 2026.
Just complete IRS Form 5695 to get the credit applied to your federal income tax return. Be sure to keep any certifications from the manufacturer, along with contracts and proof of payment. You don’t have to submit this documentation with the form, but it’s a good idea to have it in case you need it in the future.
What Types of Energy-Efficient Tax Credits Are You Looking For?
Roofs | Solar Energy Systems | Windows, Doors and Skylights | Insulation | Biomass Heaters
Air Conditioning | Water Heaters | Electric Vehicles | Geothermal Heating | Wind Turbines | Tax Rebates
Is there a tax credit for roofs? No, not under the law covering returns for the 2025 tax year. Here’s how to add your roof tax credit to your refiled tax return and the requirements to receive a roof tax credit.
Am I eligible for a roof tax deduction?
This tax credit was extended through December 31, 2025, and you may take advantage of it if you replaced your roof between 2022 and 2025. If you were eligible and did not claim it on your return as far back as 2022, you can refile your return for the appropriate year to take advantage of the savings. Consult your tax professional to find out if refiling is right for you.
- This must have been for your primary residence (you lived here most of the time).
- This must not have been for a new home or a rental.
- The roofs that were eligible are reflective asphalt or metal.
- Roof coatings were not eligible.
- You must have a copy of the Manufacturer's Certification Statement to qualify
- More eligibility requirements can be found here.
How do I apply for a roof tax credit?
- Make sure you’ve saved a copy of the roof Manufacturer’s Certification Statement for your records, but you do not need to include this with your refiled tax return. More details here.
- When you submit your refiled tax return, file Form 5695 (Residential Energy Credits) here.
How much can I claim for a new roof on my refiled tax return?
You can deduct up to 10% of the cost (not including installation costs), up to $500.
Other common questions about roof tax credits:
Was a roof replacement eligible for a tax credit?
Yes, see above for details on how to claim this tax credit.
Did a new roof qualify for the tax credit?
Not for a brand new home, but an energy-efficient replacement roof would qualify when installed on your primary residence.
Can roof repairs be used to claim the tax credit?
Usually not. The federal government typically considers repairs as current expenses, meaning those necessary to maintain a property. Replacing a roof, in contrast, is considered a capital improvement and therefore does qualify for the tax credit.
- Metal roofs with a solar reflective coating certified as ENERGY STAR®.
- Asphalt “cool roof” shingles that are ENERGY STAR®-certified and contain sufficient solar reflective granules.
- Regular metal or asphalt shingle roofs, even those that claim to be energy efficient, don’t qualify.
What roofing materials qualify for a tax credit?
Simply installing a new, durable and energy-efficient roof isn’t enough to qualify for an Energy Efficient Home Improvement Credit (25C). The roofing material must be designed and federally certified to reflect solar heat to maximize energy efficiency. You can only claim this credit on your primary residence, and the roof must be for an existing structure. Two types of materials qualify:
Did the tax credit apply to roof coatings?
No.
Are new roof shingles eligible for a tax credit?
If you are replacing your roof, the cost of materials can be claimed as a tax credit to the amount allowed by law (see above). If you are simply replacing or repairing certain shingles, that does not qualify for a tax credit.
Discover more home improvement tax credits and energy-efficient appliance rebates:
Solar Energy Systems | Windows, Doors and Skylights | Insulation | Biomass Heaters
Air Conditioning | Water Heaters | Electric Vehicles | Geothermal Heating | Wind Turbines | Tax Rebates
Solar panels collect light energy from the sun and convert it into electricity for your home and solar hot water heaters use the sun to provide hot water to your home. Here’s what you need to know to find out if you qualify for home energy improvement tax credits for installing solar panels or solar hot water heaters. Find out more about how solar energy works on our blog.
Am I eligible for a solar panel installation tax deduction?
- Both primary residences and secondary homes qualify.
- This can be for an existing home or new construction.
- This must not be for a rental home.
- The panels must provide electricity for your home.
- They must meet required fire and electrical codes.
- You must have a copy of the Manufacturer's Certification Statement to qualify.
- More eligibility requirements can be found here.
How does the solar tax credit work?
The Residential Clean Energy Credit (25D), also known as the federal solar tax credit, allows you to deduct 30% of the total cost of a qualifying solar energy system from your tax bill. This law applies to systems installed before January 1, 2026.
Costs for solar panels, inverters, mounting equipment, wiring and labor to install the system are included in the calculation. You can claim this credit for both your primary and secondary residences.
The system must be new and must be installed and working in this tax year. There’s no cap on the amount of credit, so you might enjoy large tax savings on a big installation. You cannot get a credit that’s larger than the amount of tax you owe, but you can carry forward the excess credit to reduce your taxes in future years. You’ll need to fill out IRS Form 5695 to claim this credit.
Is the solar tax credit a one-time credit?
You can only claim the credit once in the year that you installed and began using your qualifying solar energy system. However, if your credit exceeds your tax bill, you can carry forward the remaining credit to offset taxes in future years. The credit is available for systems installed before January 1, 2026.
How do I apply for a solar panel tax credit?
- Make sure you’ve saved a copy of the solar panel’s Manufacturer’s Certification Statement for your records, but you do not need to file this with your tax return. More details here.
- When you submit your 2025 tax return, file Form 5695 (Residential Energy Credits) here.
How much can I claim for new solar panels on my tax return?
You can receive a tax credit for a percentage of the cost (not including installation costs), which varies depending on when the system was/is placed in service.
- 30% for systems placed in service after December 31, 2016, and before January 1, 2020
- 26% for systems placed in service after December 31, 2019, and before January 1, 2022
- 30% for systems placed in service after December 31, 2021, and before January 1, 2033
Other common questions about solar panel tax credits:
Is there an ENERGY STAR® label yet for solar panels?
No, solar energy products are not currently eligible to earn the ENERGY STAR® label because they do not yet meet the criteria in the ENERGY STAR® guiding principles. As solar panels increase in popularity that could change.
Am I eligible for a solar hot water heater tax credit?
- The water heater may be installed in your primary residence or a secondary home.
- Existing and new homes qualify; rentals do not.
- Solar panels must help power the residence and meet the necessary fire and electrical codes.
- At least half the energy generated by the solar hot water heater must come from the sun.
- The system must be certified by the Solar Rating and Certification Corporation.
- The water heated by the solar water heater must be used inside the home.
- More eligibility requirements can be found here.
How do I apply for a solar hot water heater tax credit?
- When you submit your 2025 tax return, file Form 5695 (Residential Energy Credits) here.
How much of a credit can I claim on my tax return for a new solar hot water heater?
You could be eligible for an energy-efficient home improvement tax credit on as much as 30% of the cost, including installation, with no upper limit. But the value of the tax credit is scheduled to decrease over time.
- 30% for systems placed in service after December 31, 2016, and before January 1, 2020
- 26% for systems placed in service after December 31, 2019, and before January 1, 2022
- 30% for systems placed in service after December 31, 2021, and before January 1, 2033
Other common questions about solar hot water heater tax credits:
Is a solar water heater installed for a swimming pool or hot tub eligible for a tax credit?
No.Do solar hot water repairs qualify for tax credits?
No. They are considered maintenance expenses rather than home improvement expenses and therefore are not eligible.Will any ENERGY STAR® solar water heater qualify?
Yes, all ENERGY STAR-certified solar hot water heaters are eligible for the tax credit.Is the solar tax credit refundable?
The solar tax credit is nonrefundable. That means that you can only claim credit up to the total amount of tax you owe. If you have excess credit, you won’t receive it as a cash refund. You can, however, apply the excess credit to your future tax bills.
Discover more home improvement tax credits and energy-efficient appliance rebates:
Roofs | Windows, Doors and Skylights | Insulation | Biomass Heaters
Air Conditioning | Water Heaters | Electric Vehicles | Geothermal Heating | Wind Turbines | Tax Rebates
Replacing old windows, doors and skylights is one way to save on energy costs. New energy-efficient windows, doors and skylights can prevent heat loss in cooler weather and help maintain the cool temperature you want during the warmer months.
Is there a tax credit for new windows?
The Energy Efficient Home Improvement Credit applies to new windows and doors if they meet the requirements for ENERGY STAR® Most Efficient certification. You can claim credit equal to 30% of the cost of your windows and doors, excluding installation. The credit is capped at $1,200 in total, and you can claim up to $600 for windows and $200 per door (up to a maximum of $500). The credit only applies to products manufactured by certified companies with a QMID code. You must have installed the improvements in your primary residence by December 31, 2025.
Am I eligible for a windows, doors and/or skylights tax credit?
This tax credit has been extended through December 31, 2025, and you may take advantage of it even if you replaced your windows, doors, or skylights before 2025. If you were eligible and did not claim it on your return as far back as 2022, you can refile your return for the appropriate year to take advantage of the savings. Consult your tax professional to find out if refiling is right for you.
- This must be for your primary residence (you live here most of the time).
- This must not be for a new home or a rental.
- The replacement windows, doors or skylights must be ENERGY STAR-certified products.
- You must have a copy of the Manufacturer's Certification Statement to qualify.
- More eligibility requirements can be found here.
How do I apply for a windows, doors and/or skylights tax credit?
- Make sure you’ve saved a copy of the Manufacturer’s Certification Statement for your records, but you do not need to file this with your tax return. More details here.
- When you submit your 2025 tax return, file Form 5695 (Residential Energy Credits) here.
How much can I claim for new energy-efficient windows, doors and/or skylights on my tax return?
- You could be eligible for an energy-efficient home improvement tax credit of up to 10% of the cost (not including installation), up to $500 for two exterior doors and up to $600 for windows and skylights.
Other common questions about windows, doors and/or skylights tax credits:
Do I have to replace all the windows, doors or skylights to qualify for the tax credit?
No. You can replace any number of windows, doors and/or skylights and still qualify as long as they are certified by ENERGY STAR®.
Do only replacements count for a tax credit?
No. Installing a new window where there wasn’t one previously (such as in an addition) also can qualify for the home energy improvement tax credit.
Discover more home improvement tax credits and energy-efficient appliance rebates:
Roofs | Solar Energy Systems | Insulation | Biomass Heaters
Air Conditioning | Water Heaters | Electric Vehicles | Geothermal Heating | Wind Turbines | Tax Rebates
If you want to learn more about insulating your home, check out our Home Energy Savings series on attic insulation. In addition, products that reduce air leaks can also qualify if they follow certain criteria.
Am I eligible for tax credits for insulation?
This tax credit has been extended through December 31, 2025, and you may take advantage of it even if you replaced your insulation before 2025. If you were eligible and did not claim it on your return as far back as 2022, you can refile your return for the appropriate year to take advantage of the savings. Consult your tax professional to find out if refiling is right for you.
- This must be your primary residence (you live here most of the time).
- This must not be a new home or a rental.
- Bulk insulation products such as batts, spray foam insulation and rolls are typically covered.
- The credit can apply to replacing or improving insulation, but its primary purpose must be to insulate.
- You must have a copy of the Manufacturer’s Certification Statement to qualify.
- More eligibility requirements can be found here.
What insulation qualifies for an energy tax credit?
This credit falls within the Energy Efficient Home Improvement Tax Credit program. It applies to common types of insulation, including foam board, loose fill, rolls and batts, blankets, blown fibers, mineral wood board and spray foam. It also applies to qualifying weather stripping, caulk and house wrap. Make sure to get and save a copy of the Manufacturer’s Certification Statement for all products you install. You don’t need to include these documents with your tax return, but you do need to submit Form 5695 to claim the credit.
How do I apply for an insulation tax credit?
- Make sure you’ve saved a copy of the Manufacturer’s Certification Statement for your records, but you do not need to file this with your tax return. More details here.
- When you submit your 2025 tax return, file Form 5695 (Residential Energy Credits) here.
How much of a tax credit can I claim for insulation?
For the 2023-2025 tax years,, you can claim 30% of the cost (not including installation), up to $1,200.
For years 2022, you can claim 10% of the cost (not including installation), up to $500.
Other common questions about insulation tax credits:
Do air sealing products also qualify for a tax credit?
Products that reduce air leaks can also qualify, as long as they come with a Manufacturer’s Certification Statement. These include:
- Weather stripping
- Spray foam in a can, designed to air seal
- Caulk designed to air seal
- House wrap
Can I install the insulation or air sealing products myself and get the insulation tax credit?
Yes, you can install the products yourself and still qualify for the credit.
Discover more home improvement tax credits and energy-efficient appliance rebates:
Roofs | Solar Energy Systems | Windows, Doors and Skylights | Biomass Heaters
Air Conditioning | Water Heaters | Electric Vehicles | Geothermal Heating | Wind Turbines | Tax Rebates
Biomass stoves burn plant-derived fuel, such as wood and wood waste like wood pellets, as well as grasses.
Am I eligible for a biomass stove tax credit?
This tax credit has been extended through December 31, 2025, and you may take advantage of it even if you installed your biomass stove before 2025. If you were eligible and did not claim it on your return as far back as 2023, you can refile your return for the appropriate year to take advantage of the savings. Consult your tax professional to find out if refiling is right for you.
- This must be used for your primary residence (you live here most of the time).
- It cannot be used for a new home or a rental.
- The stoves must be used for heat or water heating and have a thermal efficiency rating of at least 75% as measured using a lower heating value.
- You must have a copy of the Manufacturer’s Certification Statement to qualify.
- More eligibility requirements can be found here.
How do I apply for a biomass stove tax credit?
- Make sure you’ve saved a copy of the Manufacturer’s Certification Statement for your records, but you do not need to file this with your tax return. More details here.
- When you submit your 2025 tax return, file Form 5695 (Residential Energy Credits) here.
How much can I claim for a biomass stove on my tax return?
If the unit has a Thermal Efficiency Rating of at least 75%, you are eligible to claim an uncapped credit of up to 30% of the purchase and installation costs, with an annual cap of $2,000.
- 26% for systems placed in service between 01/01/2021 through 12/31/2022
- 30% for systems placed in service between 01/01/2023 through 12/31/2025
Other common questions about biomass stove tax credits:
What should a retailer provide me when I buy a biomass stove to get the tax credit?
Retailers should give you the Manufacturer’s Certification Statement for the model you purchase. This is a signed statement from the manufacturer certifying that the stove qualifies for the tax credit. Manufacturers often have these on their websites if you did not get one when you bought the stove. Be sure the statement matches the model number of your biomass stove.
What does the IRS consider to be biomass fuel?
The IRS defines biomass fuel as “any plant-derived fuel available on a renewable or recurring basis.”
Discover more home improvement tax credits and energy-efficient appliance rebates:
Roofs | Solar Energy Systems | Windows, Doors and Skylights | Insulation
Air Conditioning | Water Heaters | Electric Vehicles | Geothermal Heating | Wind Turbines | Tax Rebates
Replacing antiquated central air conditioners or adding central air conditioning to your home could qualify you for a federal tax credit. Find out more here.
Am I eligible for a new A/C unit tax credit?
This tax credit has been extended through December 31, 2025, and you may take advantage of it even if you installed your new central A/C unit before 2025. If you were eligible and did not claim it on your return as far back as 2023, you can refile your return for the appropriate year to take advantage of the savings. Consult your tax professional to find out if refiling is right for you.
- This must be used for your primary residence (you live here most of the time).
- It cannot be used for a new home or a rental.
- The air conditioner does not have to be replacing an old air conditioner to qualify.
- The air conditioner must be certified by ENERGY STAR® as Most Efficient to qualify for the home energy improvement tax credit.
- You must have a copy of the Manufacturer's Certification Statement to qualify.
- More eligibility requirements can be found here.
What A/C units qualify for a tax credit?
Some new A/C units qualify for a federal tax credit of up to $600 for the 2025 tax year if they are installed in your primary residence. Not all new A/C units qualify. To be eligible, they must meet the highest tier designated by the Consortium for Energy Efficiency (CEE), be ENERGY STAR® certified, and be installed. You’ll need a Manufacturer Certification Statement and a PIN to make the claim on your IRS Form 5695. The specific standards include:
- Central split systems equal to or greater than 17.0 SEER2 and 12 .0 EER2
- Packaged systems equal to or greater than 16.0 SEER2 and 11.5 EER2
- Certain ductless mini-splits that meet similar standards
How do I apply for a new air conditioner tax credit?
- Make sure you’ve saved a copy of the Manufacturer’s Certification Statement for your records, but you do not need to file this with your tax return. More details here.
- When you submit your 2025 tax return, file Form 5695 (Residential Energy Credits) here.
How much can I claim for a new air conditioner on my tax return?
You are eligible for a home improvement tax credit up to 30% of the cost if you replace or install central air conditioning. This is capped at $600.
Other common questions about energy-efficient A/C tax credits:
Do I have to replace both heating and central air to qualify?
No, you do not have to replace both your heating and air conditioning in theory. Practically speaking, however, you may have to replace both for the air conditioner to qualify. Most central air conditioners will only qualify for the tax credit if you also replace the air moving device that pushes the cool air through the duct system, and this is typically part of the heating system, too.
Is there a tax credit for window air conditioning units?
No, only central air conditioners are eligible.
Is there a tax credit for boilers and furnaces?
Yes, boilers and furnaces are also eligible for tax credits of 30% of the cost up to a maximum of $600.
Discover more home improvement tax credits and energy-efficient appliance rebates:
Roofs | Solar Energy Systems | Windows, Doors and Skylights | Insulation | Biomass Heaters
Water Heaters | Electric Vehicles | Geothermal Heating | Wind Turbines | Tax Rebates
Unlike their solar counterparts, non-solar water heaters operate on natural gas, propane or electricity. Here’s what you need to know to see if your water heater qualifies for a federal tax credit.
Am I eligible for a non-solar water heater tax credit?
This tax credit has been extended through December 31, 2025, and you may take advantage of it even if you installed your new water heater before 2025. If you were eligible and did not claim it on your return as far back as 2023, you can refile your return for the appropriate year to take advantage of the savings. Consult your tax professional to find out if refiling is right for you.
- This must be used for your primary residence (you live here most of the time).
- It cannot be used for a new home or a rental.
- Electric heat pump water heaters qualify for the home improvement tax credit only if they have a Uniform Energy Factor of at least 2.2.
- Natural gas, oil or propane hot water heaters must have a Uniform Energy Factor of at least 0.82 or thermal efficiency of at least 95%.
- You must have a copy of the Manufacturer's Certification Statement to qualify.
- More eligibility requirements can be found here.
How do I apply for a non-solar water heater tax credit?
- Make sure you’ve saved a copy of the Manufacturer’s Certification Statement for your records, but you do not need to file this with your tax return. More details here.
- When you submit your 2025 tax return, file Form 5695 (Residential Energy Credits) here.
How much can I claim for a non-solar water heater on my tax return?
You are eligible for a $600 home improvement tax credit if you replace your non-solar water heater with a more energy-efficient model.
Other common questions about non-solar water heater tax credits:
Does it matter what fuel my water heater uses to get the tax credit?
Water heaters that run on gas, propane or electricity are all potentially eligible as long as they meet other tax credit requirements listed here.
Do all ENERGY STAR-certified non-solar water heaters qualify?
No. Only some models certified by ENERGY STAR® meet the requirements. To make sure you get the credit, acquire the Manufacturer's Certification Statement that verifies the water heater's eligibility.
Discover more home improvement tax credits and energy-efficient appliance rebates:
Roofs | Solar Energy Systems | Windows, Doors and Skylights | Insulation | Biomass Heaters
Air Conditioning | Electric Vehicles | Geothermal Heating | Wind Turbines | Tax Rebates
Existing tax credits for those purchasing a new plug-in electric vehicle, or installing a home charging station, are in place for 2025. However, the One, Big, Beautiful Bill only keeps them in place through 2025. The credits are intended to incentivize the use of plug-in electric vehicles, so if you purchased a vehicle or home charger in 2025, inform your tax professional to take full advantage of the tax credits.
Am I eligible for an electric vehicle and/or home charging station tax credit?
For EV tax credits, the vehicle must:
- Have been purchased before October 1, 2025.
- Be for personal use (not resale).
- Be used in the United States.
For EV home charging stations, the equipment must:
- Have been before July 1, 2026.
- Be installed in your primary residence.
- Be installed in a residence in the United States.
How do I apply for an electric vehicle and/or home charging station tax credit?
For EV tax credits:
- When you submit your 2025 tax return, file IRS Form 8936 found here .
- Have your vehicle’s VIN ready when preparing your tax return or provide it to your professional tax preparer.
For EV home charging stations:
- Make sure you’ve saved a copy of the Manufacturer’s Certification Statement for your records and any installation invoices, but you do not need to file these with your tax return. More details here.
- When you submit your 2025 tax return, file Form 8911 (Alternative Fuel Vehicle Refueling Property Credit) here.
How much can I claim for an electric vehicle and/or home charging station on my tax return?
For qualified plug-in electric vehicles (EVs) purchased and placed into service between January 1, 2023, and September 20, 2025, you are eligible for a clean vehicle tax credit of up to $7,500. The credit is non-refundable, so if you owe less in taxes than the credit amount, you cannot receive a refund for the excess amount.
The credit equals:
- $2,500 base amount
- Plus $417 for a vehicle with at least 7 kilowatt hours of battery capacity
- Plus $417 for each kilowatt hour of battery capacity beyond 5 kilowatt hours
- Up to $7,500 total
For vehicles purchased after April 18, 2023, that meet critical mineral and battery component requirements, additional amounts apply:
- $3,750 if the vehicle meets the critical minerals requirement only
- $3,750 if the vehicle meets the battery components requirement only
- $7,500 if the vehicle meets both
For home EV charging stations, taxpayers are eligible for a credit of 30% of the purchase and installation cost of the home charging unit, however, this is capped at $1,000. For businesses installing EV chargers, this is capped at $3,000.
Other common questions about electric vehicle and home charging station tax credits:
What if I purchased a plug-in electric vehicle before the 2024 tax year?
If you did not take advantage of this tax credit during the year you purchased the vehicle, you can still claim the tax credit, but you will need to refile the tax return for that year. Amounts vary depending on the date you took delivery of the vehicle, so consult your tax professional to determine if this is right for you.
Will the tax credit for installing an EV home charging station still exist next year?
Yes, but only for charging stations installed before July 1, 2026.
Discover more home improvement tax credits and energy-efficient appliance rebates:
Roofs | Solar Energy Systems | Windows, Doors and Skylights | Insulation | Biomass Heaters
Air Conditioning | Geothermal Heating | Wind Turbines | Tax Rebates
Geothermal heat pumps are similar to ordinary heat pumps, except for this one major difference: They use the ground instead of outside air to provide heating, air conditioning and, in Geothermal heat pumps are similar to ordinary heat pumps, except for this one major difference: They use the ground instead of outside air to provide heating, air conditioning and, in most cases, hot water. They use the Earth’s natural heat, making them among the most efficient heating and cooling technologies currently available.
Does my heat pump qualify for a tax credit?
- Both primary residences and secondary homes qualify.
- It can be used for an existing home or new construction.
- Rentals do not qualify.
- All ENERGY STAR-qualified geothermal heat pumps are eligible for the tax credit.
- More eligibility requirements can be found here.
How do I apply for a geothermal heat pump tax credit?
When you submit your 2025 tax return, file Form 5695 (Residential Energy Credits) here.
How much can I claim for a geothermal heat pump on my tax return?
Installing a geothermal heat pump in your home could entitle you to a federal tax credit of up to 30% of the cost, including installation, with no upper limit. However, the percentage of the cost you can claim varies depending on when the system was/is placed in service.
- 30% if placed in service after December 31, 2016, and before January 1, 2020
- 26% if placed in service after December 31, 2019, and before January 1, 2022
- 30% of placed in service after December 31, 2021, and before January 1, 2033
Other common questions about geothermal heat pump tax credits:
Does a geothermal heat pump have to include water heating to qualify for the federal tax credit?
No, it does not. That requirement was eliminated in December 2009.
Is there a tax credit for water-to-water geothermal heat pumps?
Yes, water-to-water geothermal heat pumps can qualify for the tax credit. The geothermal heat pump tax credit is for 30% of the cost of the product (including installation costs) with no upper limit (see above).
Discover more home improvement tax credits and energy-efficient appliance rebates:
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Air Conditioning | Water Heaters | Electric Vehicles | Wind Turbines | Tax Rebates
Wind turbines essentially collect kinetic energy from the wind and then convert it into electricity.
Am I eligible for a residential wind turbine tax credit?
- Only primary residences are eligible starting in the 2023 tax year.
- It can be used for an existing home or new construction.
- Rentals are not eligible.
- To be eligible for the credit, the turbine must have a nameplate capacity of no more than 100 kilowatts.
- More eligibility requirements can be found here.
How do I apply for a residential wind turbine tax credit?
When you submit your 2025 tax return, file Form 5695 (Residential Energy Credits) here.
How much can I claim for a small wind turbine on my tax return?
You can qualify for up to 30% of the cost (including installation) for a small wind turbine put into service during 2023, but that percentage may decline if you are refiling for a previous year:
- 30% if placed in service after December 31, 2016, and before January 1, 2020
- 26% if placed in service after December 31, 2019, and before January 1, 2022
- 30% if placed in service after December 31, 2021, and before January 1, 2033
Discover more home improvement tax credits and energy-efficient appliance rebates:
Roofs | Solar Energy Systems | Windows, Doors and Skylights | Insulation | Biomass Heaters
Air Conditioning | Water Heaters | Electric Vehicles | Geothermal Heating | Tax Rebates
Like federal tax credits, rebates are incentives for consumers — this time from manufacturers and/or power companies rather than the federal government — to upgrade older and likely less energy-efficient appliances with newer models that operate more efficiently.
Unlike tax credits, rebates are actual cash — eventually. Yes, some paperwork is required. You generally need to show proof of purchase and model numbers (depending on the type of rebate), but when everything matches up, your rebate will be mailed to your home from either the participating manufacturer or energy company.
What types of appliances qualify for rebates?
While the list changes regularly as manufacturers and power companies offer different options, the following appliances generally qualify for rebates:
Appliance rebates:
- Dishwashers
- Washing machines
- Refrigerators and freezers
- Residential dehumidifiers
- Room air conditioners
- Water coolers
Fan rebates:
- Ceiling fans
- Residential ventilation fans
Residential water heater rebates:
- Whole-house tankless water heaters
- Heat pump water heaters
- High-efficiency gas storage water heaters
- Solar/electric
- Solar/gas
Heating and cooling equipment rebates:
- Boilers
- Central A/C
- Electric air-source heat pump
- Furnaces
- Geothermal heat pumps
- Smart thermostats
Home exterior/interior rebates:
- Insulation
- Roofing products
- Windows, doors, skylights
Lighting product rebates:
- CFL bulbs
- Ceiling fans with lights
- Decorative string lights
- LED lighting
- Light fixtures
How do I find out which energy-efficient appliance rebates are available?
While there are a number of ways you can discover rebates, the easiest way is to visit the ENERGY STAR® rebate center and type in your zip code. This government agency keeps track of rebates for energy-efficient appliances from a variety of resources, making it your one-stop appliance-rebate shop. The rebates change regularly, so it’s worth checking the site when you’re considering replacing or buying an appliance for the most up to date information.
It’s worth noting that in some instances an energy-efficient appliance might qualify for both a rebate and a tax credit. Now that could be a win-win for you and the environment!
Discover home improvement tax credits that can save you money:
Roofs | Solar Energy Systems | Windows, Doors and Skylights | Insulation | Biomass Heaters
Air Conditioning | Water Heaters | Electric Vehicles | Geothermal Heating | Wind Turbines | Tax Rebates