Home Energy Tax Credit Calculator

Two federal tax credits, Section 25C and Section 25D, rewarded energy-efficient home upgrades, but both expired for property placed in service after December 31, 2025 under the One Big Beautiful Bill Act. This tool estimates what each credit would have been worth, which helps when reviewing a project completed through 2025 or weighing whether today's state and utility incentives make a comparable upgrade worthwhile. The credits offset what you owed dollar for dollar rather than just lowering taxable income.

Through 2025, the Energy Efficient Home Improvement Credit under Section 25C returned 30% of the cost of qualifying efficiency upgrades, capped at $1,200 a year for most work, with carve-outs that raised the ceiling for certain items such as heat pumps ($2,000) and qualified energy property ($600 per item). The Residential Clean Energy Credit under Section 25D returned 30% of the cost of new clean energy property installed at your home, with no annual or lifetime cap. The calculator adds up the eligible amounts from both sections under the rules that applied through December 31, 2025, based on what you enter.

Because these are credits, they cut your actual tax bill dollar for dollar instead of reducing what is taxed. Hold on to every invoice and receipt tied to the improvements, since you will need them when you file. Eligibility and the final credit amount depend on the specifics of your return, so treat this as an estimate and check with a qualified tax professional before relying on it.