⚠️ Credit Status Update: The IRS Section 25C home energy audit credit described below expired December 31, 2025 under the One Big Beautiful Bill (OBBBA, Public Law 119-21, signed July 4, 2025). Audits completed in 2026 do not qualify.
If you completed a qualifying audit before December 31, 2025, you can still claim the credit on your 2025 tax return (Form 5695). The information below remains accurate for those 2025 filers. Find what energy incentives are still available in 2026 →
Home Energy Audit & IRS 25C Credit (Expired Dec 2025): How to Claim on Your 2025 Return
The Inflation Reduction Act (IRA) expanded the Section 25C Nonbusiness Energy Property Credit to include home energy audits starting in 2023. That credit — covering 30% of audit costs up to $150/year — was terminated for property placed in service after December 31, 2025, by the One Big Beautiful Bill (OBBBA). If you had a qualifying audit done in 2023, 2024, or 2025 and haven't claimed it yet, the information below explains how to do so.
What Was the IRS 25C Home Energy Audit Credit?
Section 25C of the Internal Revenue Code included a credit for home energy audits. While it was available, the credit was:
- 30% of the cost of a qualifying home energy audit
- Maximum $150 per tax year
- Available for tax years 2023–2025 (expired under OBBBA for 2026 and beyond)
- Non-refundable (reduces tax liability to $0, no cash refund)
- Part of the overall $1,200 annual 25C credit cap
What Qualified as a Home Energy Audit for the 25C Credit?
The IRS required:
- Conducted by a certified home energy auditor (BPI-certified, RESNET HERS Rater, or state-licensed equivalent)
- Must include a written report identifying the most significant energy efficiency improvements
- Report must estimate the energy and cost savings from each recommended improvement
- The audited home must be your primary residence located in the U.S.
Typical Home Energy Audit Costs vs. Credit (2023–2025)
| Audit Type | Typical Cost | 30% Credit | You Pay |
|---|---|---|---|
| Basic walkthrough audit | $150–$300 | $45–$90 | $105–$210 |
| Blower door + combustion test | $300–$500 | $90–$150 | $210–$350 |
| Comprehensive energy audit | $400–$700 | $120–$150 (capped) | $250–$550 |
How to Find a Qualified Home Energy Auditor
- BPI (Building Performance Institute): bpi.org — find BPI-certified contractors by ZIP code
- RESNET: resnet.us — find HERS Raters
- DOE Home Energy Score: Energy.gov — HES-authorized contractors
- State energy offices: Many maintain certified auditor directories
How to Claim the Credit on Your 2025 Tax Return
- Verify you completed the audit before December 31, 2025
- Keep the written report and paid invoice from the auditor
- Confirm the auditor's certification (BPI/RESNET credential number)
- Complete Form 5695 — Part II, Nonbusiness Energy Property Credit, Line 19b (Home energy audits)
- Attach to Form 1040 when filing your 2025 federal return (due April 15, 2026 or October 15 with extension)
- Keep records for at least 3 years after filing
What Still Works in 2026: Alternatives to 25C
The 25C credit is gone for 2026. Here's what remains:
- HOMES Rebate Program — state-administered, income-eligible, up to $4,000–$8,000 for whole-home retrofits
- HEAR Program — HEEHRA rebates for efficient electric appliances, still active in many states
- State and utility rebates — many states and utilities fund their own audit incentives independently
- WAP (Weatherization Assistance Program) — free energy audits and improvements for income-eligible households
Is the IRS 25C home energy audit credit still available in 2026?
No. The Section 25C credit (including the $150 audit credit) expired December 31, 2025 under OBBBA (Public Law 119-21). Audits completed in 2026 do not qualify. If you completed a qualifying audit in 2025 or earlier, claim it on that year's return using Form 5695.
Does a home energy audit have to be done by a certified professional to qualify?
Yes. For 2023–2025 claims, the auditor must have been certified by BPI, RESNET, or an equivalent state program. The audit must produce a written report with specific energy-saving recommendations. A general home inspection or HVAC tune-up does not qualify.
Can I carry forward an unused 25C audit credit from 2025?
No. Section 25C credits are non-refundable and do NOT carry forward. If your 2025 tax liability was less than the credit amount, the unused portion is lost. This is different from the solar credit (Section 25D, also expired for 2026) which did allow carry-forward.
How do I claim the home energy audit credit on my 2025 tax return?
File IRS Form 5695 with your 2025 Form 1040. Complete Part II, Line 19b. Enter the qualifying audit cost (max $500 for the $150 cap). Keep the auditor's written report and your receipt for 3+ years after filing.