Home Energy Efficiency Upgrades: 2025 Tax Credit Changes [Video]

Big Changes Coming for Home Energy Tax Breaks in 2025

Homeowners dreaming of energy-efficient upgrades should take note: major changes are on the horizon for federal tax credits starting in 2025.

The Inflation Reduction Act of 2022, a landmark piece of legislation aimed at combating climate change, introduced generous tax credits for homeowners making their homes more energy-efficient. But get ready for a shakeup. The structure and amounts of these credits are set for a meaningful overhaul in 2025.

While the specifics are still being finalized, experts anticipate a shift in focus towards incentivizing deeper energy savings. This coudl mean larger tax breaks for homeowners undertaking more substantial renovations, such as installing solar panels, upgrading insulation, or replacing outdated heating and cooling systems.

“the goal is to encourage homeowners to make meaningful investments in energy efficiency,” said a spokesperson for the Department of Energy. “these changes will help ensure that the tax credits are effectively …