Explainer: Section 25 Tax Credits - Consumer Credits

Written By Cassandre Arkema

What do Section 25 Tax Credits do?

  • Help homeowners save money on energy efficiency and clean energy upgrades

Section 25C Tax Credits

  • Covers 30% of expenditures, up to $3,200

    • Up to $2,000 for heat pumps, biomass stoves and boilers

    • Up to $1,200 for doors, windows, insulation and energy audits

  • Can be used for heat pumps and energy efficiency upgrades

  • Unused credits expire

  • Does not apply to new construction

Section 25D Tax Credits

  • Covers 30% of expenditures, no limit

  • Can be used for rooftop solar, battery storage, geothermal

  • Unused tax credits rolls over

  • Can apply to new construction

Cassandre Arkema
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