Current tax law (after enactment of the One Big Beautiful Bill Act) allows homeowners to claim up to $3,200 in 2025 tax credits for energy-efficient home improvements, but only if those improvements are placed in service on or before December 31, 2025.
What’s Available?
There are two key credits to know about.
- Up to $1,200/year for energy improvements to your primary residence, including:
- Exterior doors (up to $500 total)
- Windows and skylights (up to $600)
- Insulation and air sealing materials
- Energy-efficient furnaces, boilers, water heaters, air conditioners, and electric panels
- Up to $2,000/year for advanced systems installed in either your main or second home:
- Electric or natural gas heat pumps
- Electric or natural gas heat pump water heaters
- Biomass stoves and boilers
Additionally, a $150 credit is available for a certified home energy audit, which helps you identify the most cost-effective upgrades.
Important Details
These are non-refundable annual credits, so they reduce your tax bill—but don’t result in a refund.
Improvements must meet specific energy-efficiency standards and be installed (not just purchased) by the deadline.
You must subtract subsidies or rebates (such as those from utilities) from the cost basis used to calculate your credit.
Take Action Now
If you’ve been considering upgrades such as insulation, new windows, or high-efficiency heating systems, 2025 is your last chance to take full advantage of these credits.
How We Can Help
Sterling Tax and Accounting is here to help your business with tax planning! Our comprehensive approach to tax planning helps reduce your overall tax liability and keep more money in your pocket. If all your accountant does is file your taxes, chances are they are making you pay more than your fair share of taxes.
Learn how to proactively save on taxes by scheduling a call with our tax planning specialists.
Our tax planning, accounting & business services help you stay on track. Sterling Tax & Accounting will work with you to optimize your business and minimize your taxes. We will work to provide you and your business with the tools and resources you need to build a solid tax and business foundation. We’re a trusted CPA Firm in Sarasota, Florida. We serve clients all over the US, and proactively work to minimize their taxes.
Welcome to the Sterling Standard of business! Want to learn more? Schedule a meeting with our tax planning team here: https://www.sterling.cpa/contact-us/
Learn how Sterling Tax & Accounting can add value to your business!
Your virtual accounting and technology experts providing back office, compliance & strategic solutions for busy professionals.