26 U.S.C. § 25C

Editorial Notes

References in Text

Pub. L. 117–169Aug. 16, 2022The date of the enactment of this subsection, referred to in subsec. (e)(2), is the date of enactment of , which was approved .

Amendments

Pub. L. 119–21, § 70505(b)2025—Subsec. (d)(2)(C). , amended subpar. (C) generally. Prior to amendment, subpar. (C) read as follows: “Any oil furnace or hot water boiler which—

December 31, 2022January 1, 2027“(i) is placed in service after , and before , and—

“(I) meets or exceeds 2021 Energy Star efficiency criteria, and

“(II) is rated by the manufacturer for use with fuel blends at least 20 percent of the volume of which consists of an eligible fuel, or

December 31, 2026“(ii) is placed in service after , and—

“(I) achieves an annual fuel utilization efficiency rate of not less than 90, and

“(II) is rated by the manufacturer for use with fuel blends at least 50 percent of the volume of which consists of an eligible fuel.”

Pub. L. 119–21, § 70505(a)December 31, 2025December 31, 2032Subsec. (i). , which directed amendment of subsec. (h) by substituting “placed in service after ” for “placed in service” and all that followed through “”, was executed to subsec. (i) of this section by making the substitution for “placed in service—

December 31, 2007January 1, 2009“(1) after , and before , or

December 31, 2032“(2) after ”,

Pub. L. 117–169, § 13301(g)(1)to reflect the probable intent of Congress and the redesignation of subsec. (h) as (i) by . See 2022 Amendment note below.

Pub. L. 117–169, § 13301(h)(1)2022—, substituted “Energy efficient home improvement credit” for “Nonbusiness energy property” in section catchline.

Pub. L. 117–169, § 13301(b)Subsec. (a). , amended subsec. (a) generally. Prior to amendment, text read as follows: “In the case of an individual, there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the sum of—

“(1) 10 percent of the amount paid or incurred by the taxpayer for qualified energy efficiency improvements installed during such taxable year, and

“(2) the amount of the residential energy property expenditures paid or incurred by the taxpayer during such taxable year.”

Pub. L. 117–169, § 13301(f)(1)Subsec. (a)(3). , added par. (3).

Pub. L. 117–169, § 13301(c)Subsec. (b). , amended subsec. (b) generally. Prior to amendment, text read as follows:

Lifetime limitationDecember 31, 2005“(1) .—The credit allowed under this section with respect to any taxpayer for any taxable year shall not exceed the excess (if any) of $500 over the aggregate credits allowed under this section with respect to such taxpayer for all prior taxable years ending after .

WindowsDecember 31, 2005“(2) .—In the case of amounts paid or incurred for components described in subsection (c)(3)(B) by any taxpayer for any taxable year, the credit allowed under this section with respect to such amounts for such year shall not exceed the excess (if any) of $200 over the aggregate credits allowed under this section with respect to such amounts for all prior taxable years ending after .

Limitation on residential energy property expenditures“(3) .—The amount of the credit allowed under this section by reason of subsection (a)(2) shall not exceed—

“(A) $50 for any advanced main air circulating fan,

“(B) $150 for any qualified natural gas, propane, or oil furnace or hot water boiler, and

“(C) $300 for any item of energy-efficient building property.”

Pub. L. 117–169, § 13301(f)(2)Subsec. (b)(6). , added par. (6).

Pub. L. 117–169, § 13301(d)(1)Subsec. (c)(2). , substituted “meets—” and subpars. (A) to (C) for “meets—” and former subpars. (A) to (C) which read as follows:

“(A) applicable Energy Star program requirements, in the case of a roof or roof products,

“(B) version 6.0 Energy Star program requirements, in the case of an exterior window, a skylight, or an exterior door, and

“(C) the prescriptive criteria for such component established by the 2009 International Energy Conservation Code, as such Code (including supplements) is in effect on the date of the enactment of the American Recovery and Reinvestment Tax Act of 2009, in the case of any other component.”

Pub. L. 117–169, § 13301(d)(3)Subsec. (c)(3)(A). , inserted “, including air sealing material or system,” after “material or system”.

Pub. L. 117–169, § 13301(d)(2)Subsec. (c)(3)(D). , struck out subpar. (D) which read as follows: “any metal roof or asphalt roof installed on a dwelling unit, but only if such roof has appropriate pigmented coatings or cooling granules which are specifically and primarily designed to reduce the heat gain of such dwelling unit.”

Pub. L. 117–169, § 13301(e)Subsec. (d). , amended subsec. (d) generally. Prior to amendment, subsec. (d) related to residential energy property expenditures and defined the terms “residential energy property expenditures”, “qualified energy property” and applicable standards, “energy-efficient building property”, “qualified natural gas, propane, or oil furnace or hot water boiler”, and “advanced main air circulating fan”.

Pub. L. 117–169, § 13704(b)(1)Subsec. (d)(3)(C). , added subpar. (C).

Pub. L. 117–169, § 13301(f)(3)(A)Subsecs. (e) to (g). , added subsec. (e) and redesignated former subsecs. (e) and (f) as (f) and (g), respectively. Former subsec. (g) redesignated (h).

Pub. L. 117–169, § 13301(a)December 31, 2032December 31, 2021Subsec. (g)(2). , substituted “” for “”.

Pub. L. 117–169, § 13301(g)(1)Subsec. (h). , added subsec. (h). Former subsec. (h) redesignated (i).

Pub. L. 117–169, § 13301(f)(3)(A), redesignated subsec. (g) as (h).

Pub. L. 117–169, § 13301(g)(1)Subsec. (i). , redesignated subsec. (h) as (i).

Pub. L. 116–260, § 148(b)(3)(A)2020—Subsec. (d)(3)(E). , struck out subpar. (E) which read as follows: “a stove which uses the burning of biomass fuel to heat a dwelling unit located in the United States and used as a residence by the taxpayer, or to heat water for use in such a dwelling unit, and which has a thermal efficiency rating of at least 75 percent.”

Pub. L. 116–260, § 148(b)(3)(B)Subsec. (d)(6). , struck out par. (6). Text read as follows: “The term ‘biomass fuel’ means any plant-derived fuel available on a renewable or recurring basis, including agricultural crops and trees, wood and wood waste and residues (including wood pellets), plants (including aquatic plants), grasses, residues, and fibers.”

Pub. L. 116–260, § 141(a)December 31, 2021December 31, 2020Subsec. (g)(2). , substituted “” for “”.

Pub. L. 116–94, § 123(b)(1)2019—Subsec. (d)(3)(A). , substituted “a Uniform Energy Factor of at least 2.2” for “an energy factor of at least 2.0”.

Pub. L. 116–94, § 123(b)(2)Subsec. (d)(3)(D). , substituted “a Uniform Energy Factor” for “an energy factor”.

Pub. L. 116–94, § 123(a)December 31, 2020December 31, 2017Subsec. (g)(2). , substituted “” for “”.

Pub. L. 115–141, § 401(a)(4)2018—Subsec. (b)(2). , substituted “subsection (c)(3)(B)” for “subsection (c)(2)(B)”.

Pub. L. 115–141, § 401(a)(5)(A)Subsec. (d)(3)(B). , substituted comma for period at end.

Pub. L. 115–141, § 401(a)(5)(B)Subsec. (d)(3)(D). , substituted “, and” for period at end.

Pub. L. 115–141, § 401(a)(6)Subsec. (g)(2). , substituted “2017.” for “2017..”

Pub. L. 115–123December 31, 2017December 31, 2016 substituted “” for “”.

Pub. L. 114–113, § 181(b)(1)2015—Subsec. (c)(1). , struck out “which meets the prescriptive criteria for such component established by the 2009 International Energy Conservation Code, as such Code (including supplements) is in effect on the date of the enactment of the American Recovery and Reinvestment Tax Act of 2009 (or, in the case of an exterior window, a skylight, an exterior door, a metal roof with appropriate pigmented coatings, or an asphalt roof with appropriate cooling granules, which meet the Energy Star program requirements)” after “envelope component” in introductory provisions.

Pub. L. 114–113, § 181(b)(2)Subsec. (c)(2) to (4). , added par. (2) and redesignated former pars. (2) and (3) as (3) and (4), respectively.

Pub. L. 114–113, § 181(a)December 31, 2016December 31, 2014Subsec. (g)(2). , substituted “” for “”.

Pub. L. 113–295December 31, 2014December 31, 20132014—Subsec. (g)(2). substituted “” for “”.

Pub. L. 112–240December 31, 2013December 31, 20112013—Subsec. (g)(2). substituted “” for “”.

Pub. L. 111–312, § 710(b)(1)2010—Subsecs. (a), (b). , amended subsecs. (a) and (b) generally. Prior to amendment, subsecs. (a) and (b) read as follows:

Allowance of credit“(a) .—In the case of an individual, there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to 30 percent of the sum of—

“(1) the amount paid or incurred by the taxpayer during such taxable year for qualified energy efficiency improvements, and

“(2) the amount of the residential energy property expenditures paid or incurred by the taxpayer during such taxable year.

Limitation“(b) .—The aggregate amount of the credits allowed under this section for taxable years beginning in 2009 and 2010 with respect to any taxpayer shall not exceed $1,500.”

Pub. L. 111–312, § 710(b)(2)(D)(ii)Subsec. (c)(1). , inserted “an exterior window, a skylight, an exterior door,” after “in the case of” in introductory provisions.

Pub. L. 111–312, § 710(b)(2)(A), in introductory provisions, substituted “2009 International Energy Conservation Code, as such Code (including supplements) is in effect on the date of the enactment of the American Recovery and Reinvestment Tax Act of 2009” for “2000 International Energy Conservation Code, as such Code (including supplements) is in effect on the date of the enactment of this section”.

Pub. L. 111–312, § 710(b)(2)(E)Subsec. (c)(2)(A). , struck out “and meets the prescriptive criteria for such material or system established by the 2009 International Energy Conservation Code, as such Code (including supplements) is in effect on the date of the enactment of the American Recovery and Reinvestment Tax Act of 2009” after “on such dwelling unit”.

Pub. L. 111–312, § 710(b)(2)(D)(i)Subsec. (c)(4). , struck out par. (4). Text read as follows: “Such term shall not include any component described in subparagraph (B) or (C) of paragraph (2) unless such component is equal to or below a U factor of 0.30 and SHGC of 0.30.”

Pub. L. 111–312, § 710(b)(2)(C)(ii)Subsec. (d)(2)(A)(ii). , amended cl. (ii) generally. Prior to amendment, cl. (ii) read as follows: “any qualified natural gas furnace, qualified propane furnace, qualified oil furnace, qualified natural gas hot water boiler, qualified propane hot water boiler, or qualified oil hot water boiler, or”.

Pub. L. 111–312, § 710(b)(2)(B)Subsec. (d)(3)(E). , struck out “, as measured using a lower heating value” after “75 percent”.

Pub. L. 111–312, § 710(b)(2)(C)(i)Subsec. (d)(4). , amended par. (4) generally. Prior to amendment, par. (4) defined the terms “qualified natural gas furnace”, “qualified natural gas hot water boiler”, “qualified propane furnace”, “qualified propane hot water boiler”, “qualified oil furnace”, and “qualified oil hot water boiler”.

Pub. L. 111–312, § 710(b)(3)Subsec. (e)(3). , added par. (3).

Pub. L. 111–312, § 710(a)Subsec. (g)(2). , substituted “2011” for “2010”.

Pub. L. 111–5, § 1121(a)2009—Subsecs. (a), (b). , added subsecs. (a) and (b) and struck out former subsecs. (a) and (b) which related to credit equal to the sum of 10 percent of the amount paid for qualified energy efficiency improvements and the amount of energy property expenditures and provided limits on credits and expenditures.

Pub. L. 111–5, § 1121(d)(2)Subsec. (c)(2)(A). , inserted “and meets the prescriptive criteria for such material or system established by the 2009 International Energy Conservation Code, as such Code (including supplements) is in effect on the date of the enactment of the American Recovery and Reinvestment Tax Act of 2009” after “such dwelling unit”.

Pub. L. 111–5, § 1121(d)(1)Subsec. (c)(4). , added par. (4).

Pub. L. 111–5, § 1121(c)(2)Subsec. (d)(2)(A)(ii). , amended cl. (ii) generally. Prior to amendment, cl. (ii) read as follows: “a qualified natural gas, propane, or oil furnace or hot water boiler, or”.

Pub. L. 111–5, § 1121(b)(1)Subsec. (d)(3)(B). , amended subpar. (B) generally. Prior to amendment, subpar. (B) read as follows: “an electric heat pump which has a heating seasonal performance factor (HSPF) of at least 9, a seasonal energy efficiency ratio (SEER) of at least 15, and an energy efficiency ratio (EER) of at least 13,”.

Pub. L. 111–5, § 1121(b)(2)Subsec. (d)(3)(C). , substituted “2009” for “2006”.

Pub. L. 111–5, § 1121(b)(3)Subsec. (d)(3)(D). , amended subpar. (D) generally. Prior to amendment, subpar. (D) read as follows: “a natural gas, propane, or oil water heater which has an energy factor of at least 0.80 or a thermal efficiency of at least 90 percent, and”.

Pub. L. 111–5, § 1121(b)(4)Subsec. (d)(3)(E). , inserted “, as measured using a lower heating value” after “75 percent”.

Pub. L. 111–5, § 1121(c)(1)Subsec. (d)(4). , amended par. (4) generally. Prior to amendment, text read as follows: “The term ‘qualified natural gas, propane, or oil furnace or hot water boiler’ means a natural gas, propane, or oil furnace or hot water boiler which achieves an annual fuel utilization efficiency rate of not less than 95.”

Pub. L. 111–5, § 1103(b)(2)(A)Subsec. (e)(1). , substituted “and (8)” for “(8), and (9)”.

Pub. L. 111–5, § 1121(e)December 31, 2010December 31, 2009Subsec. (g)(2). , substituted “” for “”.

Pub. L. 110–343, § 302(e)(1)2008—Subsec. (c)(1). , in introductory provisions, inserted “, or an asphalt roof with appropriate cooling granules,” before “which meet the Energy Star program requirements”.

Pub. L. 110–343, § 302(e)(2)Subsec. (c)(2)(D). , inserted “or asphalt roof” after “metal roof” and “or cooling granules” after “pigmented coatings”.

Pub. L. 110–343, § 302(d)(2)Subsec. (d)(2)(C). , amended heading and text of subpar. (C) generally. Prior to amendment, subpar. (C) related to requirements for standards for central air conditioners, electric heat pumps, and geothermal heat pumps.

Pub. L. 110–343, § 302(d)(1)Subsec. (d)(3)(C), (D). , redesignated subpars. (D) and (E) as (C) and (D), respectively, and struck out former subpar. (C) which read as follows: “a geothermal heat pump which—

“(i) in the case of a closed loop product, has an energy efficiency ratio (EER) of at least 14.1 and a heating coefficient of performance (COP) of at least 3.3,

“(ii) in the case of an open loop product, has an energy efficiency ratio (EER) of at least 16.2 and a heating coefficient of performance (COP) of at least 3.6, and

“(iii) in the case of a direct expansion (DX) product, has an energy efficiency ratio (EER) of at least 15 and a heating coefficient of performance (COP) of at least 3.5,”.

Pub. L. 110–343, § 302(d)(1)Subsec. (d)(3)(E). , redesignated subpar. (F) as (E). Former subpar. (E) redesignated (D).

Pub. L. 110–343, § 302(c), inserted “or a thermal efficiency of at least 90 percent” after “0.80”.

Pub. L. 110–343, § 302(d)(1)Subsec. (d)(3)(F). , redesignated subpar. (F) as (E).

Pub. L. 110–343, § 302(b)(1), added subpar. (F).

Pub. L. 110–343, § 302(b)(2)Subsec. (d)(6). , added par. (6).

Pub. L. 110–343, § 302(a)December 31, 2007Subsec. (g). , substituted “placed in service—” for “placed in service after ” and added pars. (1) and (2).

Pub. L. 110–1722007—Subsec. (c)(3). substituted “part 3280” for “section 3280”.

Pub. L. 109–1352005—Subsec. (b)(2). substituted “subsection (c)(2)(B)” for “subsection (c)(3)(B)”.

Statutory Notes and Related Subsidiaries

Effective Date of 2022 Amendment

Pub. L. 117–169, title I, § 13301(i)Aug. 16, 2022136 Stat. 1946

section 13704(b)(1) of Pub. L. 117–169Dec. 31, 2024section 13704(c) of Pub. L. 117–169section 45Z of this titleAmendment by applicable to transportation fuel produced after , see , set out as an Effective Date note under .

Effective Date of 2020 Amendment

Pub. L. 116–260, div. EE, title I, § 141(b)Dec. 27, 2020134 Stat. 3054

Pub. L. 116–260, div. EE, title I, § 148(c)(2)Dec. 27, 2020134 Stat. 3056

Effective Date of 2019 Amendment

Pub. L. 116–94, div. Q, title I, § 123(c)Dec. 20, 2019133 Stat. 3231

Effective Date of 2018 Amendment

Pub. L. 115–123, div. D, title I, § 40401(b)Feb. 9, 2018132 Stat. 148

Effective Date of 2015 Amendment

Pub. L. 114–113, div. Q, title I, § 181(c)Dec. 18, 2015129 Stat. 3072

Effective Date of 2014 Amendment

Pub. L. 113–295, div. A, title I, § 151(b)Dec. 19, 2014128 Stat. 4021

Effective Date of 2013 Amendment

Pub. L. 112–240, title IV, § 401(b)Jan. 2, 2013126 Stat. 2337

Effective Date of 2010 Amendment

Pub. L. 111–312, title VII, § 710(c)Dec. 17, 2010124 Stat. 3315

Effective Date of 2009 Amendment

Pub. L. 111–5, div. B, title I, § 1103(c)Feb. 17, 2009123 Stat. 321

Pub. L. 111–5, div. B, title I, § 1121(f)Feb. 17, 2009123 Stat. 324

Effective Date of 2008 Amendment

Pub. L. 110–343, div. B, title III, § 302(f)Oct. 3, 2008122 Stat. 3845

Effective Date

Pub. L. 109–58, title XIII, § 1333(c)Aug. 8, 2005119 Stat. 1030