[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"detail-sidebar-cat-1-en-105":3,"doc-seo-305044-105":53,"doc-detail-305044-en":131},{"code":4,"msg":5,"data":6},0,"success",[7,14,19,24,29,34,39,44,49],{"id":8,"doc_module":9,"doc_module_name":10,"category_name":11,"show_sort_weight":12,"slug":13},11,1,"Template","Presentations",90,"presentations",{"id":15,"doc_module":9,"doc_module_name":10,"category_name":16,"show_sort_weight":17,"slug":18},12,"Resumes",80,"resumes",{"id":20,"doc_module":9,"doc_module_name":10,"category_name":21,"show_sort_weight":22,"slug":23},14,"Invoices",70,"invoices",{"id":25,"doc_module":9,"doc_module_name":10,"category_name":26,"show_sort_weight":27,"slug":28},15,"Posters",60,"posters",{"id":30,"doc_module":9,"doc_module_name":10,"category_name":31,"show_sort_weight":32,"slug":33},16,"Social Media",50,"social-media",{"id":35,"doc_module":9,"doc_module_name":10,"category_name":36,"show_sort_weight":37,"slug":38},17,"Forms",40,"forms",{"id":40,"doc_module":9,"doc_module_name":10,"category_name":41,"show_sort_weight":42,"slug":43},18,"Letters",30,"letters",{"id":45,"doc_module":9,"doc_module_name":10,"category_name":46,"show_sort_weight":47,"slug":48},21,"Paper Templates",5,"papers-templates",{"id":50,"doc_module":9,"doc_module_name":10,"category_name":51,"show_sort_weight":4,"slug":52},158,"General","general-158",{"code":4,"msg":54,"data":55},"ok",{"site_id":56,"language":57,"slug":58,"title":59,"keywords":60,"description":61,"schema_data":62,"social_meta":124,"head_meta":126,"extra_data":128,"updated_unix":130},105,"en","25c-energy-efficient-home-improvement-credit-commonly-asked-questions","25C Energy Efficient Home Improvement Credit - Commonly Asked Questions","","Commonly asked questions explain how the 25C Energy Efficient Home Improvement Tax Credit works for homeowners. It clarifies eligibility for principal residences, rules excluding second homes and investment properties, and limits preventing claims for newly constructed homes. The FAQ also covers whether sales tax can be included, how to handle insulation upgrades with fixed-price contracts when labor is nonqualifying, and what it means to meet the 2021 IECC for insulation and air sealing criteria. It further outlines annual credit caps and product identification reporting requirements.",{"@graph":63,"@context":123},[64,80,102],{"@type":65,"itemListElement":66},"BreadcrumbList",[67,71,74,77],{"item":68,"name":69,"@type":70,"position":9},"https://docshare.wps.com","Home","ListItem",{"item":72,"name":10,"@type":70,"position":73},"https://docshare.wps.com/template/",2,{"item":75,"name":41,"@type":70,"position":76},"https://docshare.wps.com/template/letters/",3,{"item":78,"name":59,"@type":70,"position":79},"https://docshare.wps.com/template/25c-energy-efficient-home-improvement-credit-commonly-asked-questions/305044/",4,{"url":78,"name":59,"@type":81,"image":82,"author":87,"headline":59,"publisher":90,"fileFormat":93,"inLanguage":57,"description":61,"dateModified":94,"datePublished":95,"encodingFormat":93,"isAccessibleForFree":96,"interactionStatistic":97},"DigitalDocument",{"url":83,"@type":84,"width":85,"height":86},"https://docshare.wps.com/thumbnails/25c-energy-efficient-home-improvement-credit-commonly-asked-questions/305044.png","ImageObject",442,249,{"name":88,"@type":89},"Sage","Person",{"url":68,"name":91,"@type":92},"DocShare","Organization","application/pdf","2026-09-29","2026-09-19",true,{"@type":98,"interactionType":99,"userInteractionCount":101},"InteractionCounter",{"@type":100},"ViewAction",7,{"@type":103,"mainEntity":104},"FAQPage",[105,111,115,119],{"name":106,"@type":107,"acceptedAnswer":108},"Do I need to owe taxes to use the 25C Energy Efficient Home Improvement Tax Credit?","Question",{"text":109,"@type":110},"The 25C credit is nonrefundable, so it can only reduce or eliminate the federal tax liability of the homeowner in the year the improvement is made. It cannot exceed the taxpayer’s tax liability for that year.","Answer",{"name":112,"@type":107,"acceptedAnswer":113},"Are improvements to a second home or an investment property eligible?",{"text":114,"@type":110},"No. Improvements must be made to the taxpayer’s principal place of residence. Second homes and investment properties do not qualify.",{"name":116,"@type":107,"acceptedAnswer":117},"How do I calculate eligible costs when labor is not eligible under the 25C credit?",{"text":118,"@type":110},"The credit applies to installed insulation and air sealing materials, not labor costs. For fixed-price insulation upgrades, the contractor should estimate the qualifying portion for insulation materials and the nonqualifying portion for labor, such as by estimating installer hourly wages.",{"name":120,"@type":107,"acceptedAnswer":121},"What are the annual limits for the 25C credit, and can I claim multiple improvements in the same tax year?",{"text":122,"@type":110},"There is a $1,200 yearly maximum for insulation and air sealing. Separate limits apply for certain heating and cooling systems, with up to $2,000, so combined qualifying upgrades may reach $3,200 in total credits for the year.","https://schema.org",{"og:url":78,"og:type":125,"og:title":59,"og:site_name":91,"og:description":61},"article",{"robots":127,"canonical":78},"index,follow",{"doc_id":129,"site_id":56},305044,1790449534,{"code":4,"msg":5,"data":132},{"doc_id":129,"user_id":133,"nickname":88,"user_avatar":134,"doc_module":9,"category_id":40,"category_name":41,"doc_title":59,"doc_description":61,"doc_content":135,"file_id":136,"file_url":137,"file_type":138,"file_size":139,"view_count":101,"is_deleted":4,"is_public":9,"is_downloadable":9,"audit_status":9,"page_count":47,"language":140,"language_code":57,"site_id":56,"html_lang":57,"table_of_contents":141,"faqs":142,"seo_title":143,"seo_description":61,"update_tm":144,"read_time":73},687197207057,"https://ap-avatar.wpscdn.com/davatar_29158cc5080c5b710cf443261637dec0","Commonly Asked Questions About the 25C Energy Efficient Home Improvement Credit  \nCOPYRIGHT © 2023 NAIMA ALL RIGHTS RESERVED  \nDo you need to owe taxes to take advantage of the 25C Energy Efficient Home Improvement Tax Credit?  \nThe 25C tax credit is a nonrefundable personal tax credit. That means it can only be used to decrease or eliminate the federal tax liability of the homeowner in the year the insulation improvement is made. A taxpayer does not receive a credit in the form of a payment for any amount that exceeds the taxpayer's tax liability for the year.  \nAre the credits available for improvements made to a second home or an investment property?  \nImprovements made to a second home or investment property are not eligible for the credit. Qualifying improvements must be made to the taxpayer's principal place of residence.  \nCan a taxpayer claim the credits for expenditures incurred for a newly constructed home?  \nNo. The tax credit is limited to insulation and air sealing improvements made to an existing home or for an addition or renovation to an existing home.  \nThis document provides reliable information on the 25C tax credit, but it is offered for informational purposes only. NAIMA is not offering tax advice and the information provided in this document should not be relied upon as legal advice on qualifying for tax credits.  \n2 Commonly Asked Questions About the 25C Energy Efficient Home Improvement Credit  \nMay a taxpayer include sales tax when calculating the amount of expenditures eligible for the credits?  \nYes. The sales tax on qualifying insulation or air sealing material is part of the amount paid and therefore included within the eligible expense.  \nIf labor is not an eligible expense under the 25C credit, what is considered an eligible expense?  \nThe 25C tax credit applies to installed insulation and air sealing materials designed to reduce building heat loss or gain but does not apply to labor costs associated with its installation (labor has never been an eligible expense under the 25C tax credit) . For an insulation upgrade for which a taxpayer pays a fixed price, the contractor should make a reasonable estimate of the qualifying cost of the insulation materials and the nonqualifying labor cost of the project. Nonqualifying labor expenses might reasonably be determined by estimating the total hourly wages paid to the installer(s) for project installation.  \nWhat does it mean to meet the 2021 IECC for credit eligibility?  \nInsulation materials and air sealing materials must meet the criteria set by the International Energy Conservation Code (“IECC”) standard in effect at the start of the year that is two years prior to the year the materials areplaced in service. For projects completed in 2023, that means complying with the prescriptive requirements of the 2021 IECC. The prescriptive table of the 2021 IECC establishes ceiling, wall, and floor insulation R-value requirements. The IECC sets requirements for new construction, so strict compliance with its insulation provisions may be unachievable in existing buildings. Best efforts should be made to meet the insulation levels set by the 2021 IECC for each area of the home being upgraded. The credit does not require air leakage testing or third-party certification of compliance.  \n3 Commonly Asked Questions About the 25C Energy Efficient Home Improvement Credit  \nCan I claim the credit for multiple improvements in the same tax year?  \nThere is a $1,200 yearly tax credit maximum for insulation and air sealing. Electric or natural gas heat pump water heaters, electric or natural gas heat pumps, and biomass stoves and boilers have a separate yearly credit limit of $2,000 . Therefore, taxpayers may claim up to $3,200 in tax credits for combined upgrades in insulation and qualifying heating and cooling systems.  \nIs a certificate of insulation product purchase required?  \nWhile there are product identification number reporting requirements for certain 25C eligible products","cbCaitPUDC9r8WJi","https://ap.wps.com/l/cbCaitPUDC9r8WJi","pdf",1277213,"English","# Do I need to owe taxes to use the 25C tax credit?\n## Can I claim the credit for a second home or investment property?\n## Can I claim the credit for a newly constructed home?\n# Can sales tax be included in eligible expenditures?\n## What counts as an eligible expense if labor is not eligible?\n## What does it mean to meet the 2021 IECC?\n# Can I claim multiple improvements in the same tax year?\n## Is a certificate of insulation product purchase required?","[{\"question\":\"Do I need to owe taxes to use the 25C Energy Efficient Home Improvement Tax Credit?\",\"answer\":\"The 25C credit is nonrefundable, so it can only reduce or eliminate the federal tax liability of the homeowner in the year the improvement is made. It cannot exceed the taxpayer’s tax liability for that year.\"},{\"question\":\"Are improvements to a second home or an investment property eligible?\",\"answer\":\"No. Improvements must be made to the taxpayer’s principal place of residence. Second homes and investment properties do not qualify.\"},{\"question\":\"How do I calculate eligible costs when labor is not eligible under the 25C credit?\",\"answer\":\"The credit applies to installed insulation and air sealing materials, not labor costs. For fixed-price insulation upgrades, the contractor should estimate the qualifying portion for insulation materials and the nonqualifying portion for labor, such as by estimating installer hourly wages.\"},{\"question\":\"What are the annual limits for the 25C credit, and can I claim multiple improvements in the same tax year?\",\"answer\":\"There is a $1,200 yearly maximum for insulation and air sealing. Separate limits apply for certain heating and cooling systems, with up to $2,000, so combined qualifying upgrades may reach $3,200 in total credits for the year.\"}]","25C Energy Efficient Home Improvement Credit - Commonly Asked Questions | PDF",1789821407]