Summary:

The deadline to claim the 25C and 25D clean energy tax credits is now December 31, 2025, nearly eight years earlier than the original 2033 date. These programs give homeowners up to 30 percent back on eligible upgrades such as solar panels, battery storage, electrical panels, insulation, windows, and heat pumps. Projects must be completed and in service by December 31, 2025, but homeowners can still file IRS Form 5695 with proper documentation at tax time to claim the credit.

Time to Read	About 5–7 minutes
What You’ll Learn	When the 25C and 25D tax credits expire What’s included under each tax credit How long you have to take advantage Where to find IRS Form 5695 Which documentation to keep
Next Steps	Call Caccia Home Services for advice Schedule your upgrade with Caccia Home Services

Claim These Clean Energy Tax Credits Now Before They’re Gone

Bay Area homeowners are running out of time to claim two popular tax credits that help cover the cost of home electrification and energy efficiency upgrades. Both programs were originally set to expire in 2033, but will now end on December 31, 2025 instead.

This is really important news because it means time is running out to save on the cost of electrical panel upgrades and other eligible improvements. Below, you’ll learn exactly what’s changing, why it’s happening, what you need to know to file for these credits, and how to take action so you don’t miss out!

Which Programs Are Affected?

The most sweeping changes affect the Energy Efficient Home Improvement Credit and the Residential Clean Energy Credit. Each covers a different list of services and upgrades.

(25C) The Energy Efficient Home Improvement Credit

25C was designed to help offset the costs of making your home more energy-efficient. Most of the qualifying projects listed below apply to Bay Area homeowners. Gas appliances aren’t relevant because California is in the process of banning them, but we’ve included them here for reference anyway.

What It Covers:

• 200+ amp electrical panel upgrades
• Weatherization improvements, including Insulation and sealing 
• Energy-efficient windows and doors that meet ENERGY STAR ratings for efficiency
• Heat pumps, heat pump water heaters (HPWH), gas water heaters, biomass stoves, and boilers
• Home energy audits (must be handled by a qualified professional)

Credits Available:

• Up to $2,000 per year for heat pumps, HPWH, and biomass stoves or boilers
• 30% of eligible project costs, up to $1,200 per year for most upgrades
• A maximum of $250 per exterior door, up to $500 in total
• Up to $600 for exterior windows and skylights
• $150 for home energy audits

Get More Info: IRS Energy Efficient Home Improvement Credit

(25D) The Residential Clean Energy Credit

25D focuses on updates to renewable energy systems that generate or store clean power at home. Solar and wind are both very popular here in the Bay Area. Geothermal heat pumps and fuel cell systems aren’t really common yet, especially for residential homes.

What It Covers:

• Solar panels that help you power your home with clean electricity
• Battery storage systems that help you store solar energy for later use
• Solar water-heating systems, except for those used on pools or hot tubs
• Battery storage systems with a minimum capacity of 3 kWh or higher
• Small wind turbines installed on your property that help power your home
• Geothermal heat pumps that heat and cool using the ground
• Fuel cell systems that generate electricity from hydrogen

Credits Available:

• 30% of total project costs for most upgrades
• A maximum of $500 for each half-kilowatt of capacity for fuel cells

Get More Info: IRS Residential Clean Energy Credit

What About Other Clean Energy Credits?

If you’re wondering about the EV Charger credit (30C), it’s still in place with a current deadline of June 30, 2026. The New EV incentive (30D) and Used EV credit (30E) have already expired.

For all other credits, check our list of available rebates or give us a call.

Why is This Happening?

The Trump administration’s One Big Beautiful Bill Act (OBBBA) in July 2025 included a number of cuts to clean energy programs. Lawmakers hoped to reduce costs and eliminate overlapping incentives.

Officials said streamlining those programs would make it easier for the government to manage and distribute tax credits to people who qualify for them. They also felt it would help make sure any available funds were used properly to support projects that deliver the most benefit.

Important Info About Claiming 25C or 25D Tax Credits

To take advantage of either of these programs, you’ll need to fill out IRS Form 5695 at tax time in the spring. The deadline specifically applies to when your upgrades must be in service, so as long as you meet all the requirements, you’ll still qualify for a credit.

Keep all of the following items after you file:

• Receipts for the product and installation
• Invoices from your contractor (that’s us!)
• Any documentation for the product (e.g., a manual)
• Anything that proves the upgrade was in service by December 31, 2025

You don’t need to submit these at tax time, but keeping them in your records will give you coverage in case you get audited later on. For more information, see the IRS’s instructions for Form 5695.

One of the benefits of working with Caccia’s licensed pros is that we always make sure you have the right documentation before your project is closed out. It’s an important part of wrapping up the job.

How to Take Action So You Don’t Miss Out

At Caccia Home Services, we’ve been helping Bay Area homeowners upgrade their plumbing and electric systems for over 45 years. Rebate programs come and go all the time, but we’re always proud to help our neighbors make the most of them, even if it feels like a race against the clock.

Time is running out to benefit from these important federal incentives. To get the ball rolling on your next upgrade, or for expert advice on the best updates for your home, call (650) 294-8569 right away!