Key Facts
| Statutory basis | Internal Revenue Code Section 25C |
|---|---|
| Modified by | Inflation Reduction Act of 2022 (Public Law 117-169) |
| Heat pump credit cap | $2,000/year (30% of installed cost) |
| Envelope credit cap | $1,200/year (insulation, windows, doors, audit) |
| Annual total maximum | $3,200/year |
| Filing form | IRS Form 5695 (Residential Energy Credits) |
| Non-refundable | Reduces tax owed; no refund if exceeds liability |
| Carry forward | NOT allowed (unused credit lost) |
| Eligible properties | Principal residence only |
| Requires | Manufacturer Product Identification Number (PIN) for each component |
| Stacks with | Mass Save rebates, IRA §25D, state programs |
Related Sub-Entities
- Heat Pump Component ($2K cap) — ENERGY STAR with HSPF2 ≥ 7.5 in Climate Zones 5-7
- Heat Pump Water Heater ($2K cap, combined) — ENERGY STAR with UEF ≥ 2.2
- Insulation ($1.2K cap, shared) — ENERGY STAR-rated, principal residence only
- ENERGY STAR Windows ($600 cap within $1.2K) — NFRC-rated U-factor + SHGC
- Home Energy Audit ($150 cap) — Performed by qualified home energy auditor
Programs — Related Pro Build Services
- Heat Pump Installation — Manufacturer PIN documentation included.
- Mass Save Insulation — IRC §25C-eligible insulation with PIN.
- ENERGY STAR Windows — NFRC-certified windows qualifying for credit.