What is the Energy-efficient home improvement credit?

The energy-efficient home improvement credit was a federal Section 25C credit for qualifying residential efficiency upgrades, including certain insulation, windows, doors, heat pumps, biomass stoves, electrical panels, and home energy audits. OBBBA Section 70505 ended the credit for property placed in service after December 31, 2025, and Section 70505(b) made a conforming amendment to Section 25C(d)(2)(C) for certain oil furnaces and hot water boilers without creating a new 2026 credit. Taxpayers reviewing 2025 projects should keep records of Form 5695, invoices, manufacturer certifications, and placed-in-service support, while 2026 planning should rely on current credits, state rebates, utility incentives, and valid strategies, such as the Home office when business-use rules apply.