Background About the 25C Tax Credit
The 25C Energy Efficiency Home Improvement Tax Credit provides homeowners with an annual credit of up to 30% of the cost of qualifying energy-efficient upgrades, with a maximum benefit of $3,200 per year. This includes improvements like insulation, air sealing, high-efficiency furnaces, heat pumps, and water heaters—all of which help reduce energy use and lower utility bills. In 2023 alone, this credit saved over 2.3 million taxpayers an average of $882.
For contractors and industry professionals, 25C has been a key driver of business, boosting demand for energy-efficient products and services. If the credit is eliminated, contractors could see fewer projects, job losses, and a slowdown in the adoption of energy-saving home improvements.
BPA is actively working to defend the 25C credit. Nearly 1,000 industry professionals across all 50 states signed onto a letter co-organized by BPA to oppose its repeal.
Join us in taking action—call your representative today to help protect the 25C tax credit!