Federal
The Federal Credit Ended.
Here Is What Replaces It
For years, the federal Energy Efficient Home Improvement Credit (Section 25C) paid 30% of the cost of insulation, air sealing, windows, doors, and heat pumps, up to $3,200 a year. It expired for property placed in service after December 31, 2025. If your project finished in 2025, you can still claim it. If it finishes in 2026 or later, the money comes from utility and state programs instead, and there is more of it than most people expect.
Program status
Ended for property placed in service after December 31, 2025.
Eligibility
Where you stand
Two cases.
Rates and rules on this page last verified September 2026. We re-confirm at quote time.
Project completed in 2025
Claim it on your 2025 federal return with IRS Form 5695: 30% of cost, up to $2,000 for heat pumps and heat pump water heaters, and up to $1,200 for insulation, air sealing, windows, and doors, $3,200 combined.
Project completed in 2026 or later
No federal 25C credit. Your stack is Xcel, Efficiency Works, Atmos, or your co-op, plus Colorado’s state heat pump credit and, in the Denver metro, Power Ahead Colorado.
Wyoming homeowners
Wyoming leaned on the federal credit more than Colorado did. The play now is your specific utility’s rebates, which we confirm for your address.
How We Handle It
What PowerHouse does with this program
Paperwork for 2025 work
If we finished your project in 2025, we provide the documentation Form 5695 needs.
Rebuild the stack for 2026
Utility, state, and metro programs replace the federal layer. We map all of it.
No stale promises
We do not quote a federal credit that no longer exists.
FAQs
Federal Tax Credits (Ended 2025) questions, answered
Can I still claim the federal credit for work done in 2025?
Yes. Property placed in service by December 31, 2025 qualifies. File IRS Form 5695 with your 2025 return.
Is there any federal credit for 2026 projects?
The Section 25C home improvement credit is gone for 2026. Utility and state programs carry the load now, and in Colorado they are substantial.
Does this change what a heat pump costs me?
It removes one layer, and Colorado added others. Between Xcel, Efficiency Works, the state credit, and Power Ahead Colorado, qualifying 2026 installs still stack thousands. We quote the real number.
Get Started Today
Find out what Federal Tax Credits (Ended 2025) is worth for your home
One free quote confirms which programs your address qualifies for, what they pay right now, and what your project actually costs after we have filed every one of them.
970-825-0950