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Inflation Reduction Act 2026: home-energy credit guide

Policy

25C: $3,200/yr for efficiency. 25D: 30 percent for solar/battery/geothermal. 30C: $1,000 for EV charger. The full credit-by-credit walkthrough.

Harry Parker

Energy Consultant, Seenra Inc

Policy11 min readPublished

Featured infographic

IRA 25C, 25D, 30C credit comparison

25C: efficiency $3,200/yr. 25D: solar/battery 30 percent no cap. 30C: EV charger $1,000.

Open graph image · /og/savings-stack.png

IRA 25C: annual $3,200 cap for efficiency upgrades (heat pump, water heater, insulation, windows). Stacks across multiple eligible products in the same year. IRA 25D: 30 percent of installed cost (no cap) for solar, battery storage, and geothermal heat pumps. Runs through 2032 then steps down. IRA 30C: $1,000 cap (30 percent of cost) for residential EV chargers in low-income or rural census tracts.

25C Energy Efficient Home Improvement Credit

Annual $3,200 cap. Covers heat pumps ($2,000), heat-pump water heaters ($2,000), induction cooktops, electric panels ($600), insulation ($1,200), windows ($600), doors ($500), home energy audits ($150).

Non-refundable; offsets tax liability up to the credit amount. Excess does not roll forward. Runs through 2032.

25D Residential Clean Energy Credit

30 percent of installed cost, no annual cap. Covers solar PV, battery storage (over 3 kWh), geothermal heat pumps, fuel cells, small wind.

Non-refundable but rolls forward indefinitely. Runs at 30 percent through 2032, then 26 percent in 2033, 22 percent in 2034, 0 percent in 2035+.

30C Alternative Fuel Vehicle Refueling Property Credit

30 percent of installed cost up to $1,000 for residential EV chargers. Only applies in eligible census tracts (low-income or rural).

Check eligibility via the Argonne National Lab census tract lookup tool before claiming. Runs through 2032.

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Common questions

Quick answers from the editorial desk

Lifetime vs annual cap?
25C: $3,200 annual cap, resets each tax year. 25D: 30 percent of installed cost, no annual cap. 30C: $1,000 annual cap on EV chargers.
Income eligibility?
25C and 25D: no income limit. 30C: must be in eligible census tract. HEAR program (separate from tax credits): income-qualified.
Multi-home credit?
25C: primary residence only. 25D: primary residence + second home (with restrictions). 30C: primary residence only.
How to claim?
File IRS Form 5695 with your annual tax return. Keep receipts and certifications (manufacturer ENERGY STAR labels, installer documentation). Audit-defensible.

Further reading

Pillar guide, cluster siblings, and state pages cited above

Sources

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