Energy efficient appliance deduction

Forum|Forum|11 months ago
August 6, 2025
1 reply
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Is new energy efficient refrig and home improvements like insulation and caulk tax deductible in 2025? Do I need to itemize?

Ask the Experts - Beautiful - Aug 2025

KusyJ

Employee Tax Expert

The new tax law terminates the energy efficient home improvement credit. This includes qualified insulation installation projects. You may still claim up to $3,200 for certain items purchased and installed into your primary residence before 2026, the credit expires on December 31, 2025.

You do not have to itemize your taxes to claim the credit. The credit is claimed on Form 5695. However, you do need to have a tax liability to claim the credit and that credit will depend on your total tax liability. In other words, if you do not owe any taxes on your tax return, you will not be able to take advantage of the credit.

Your state may still offer tax credits and rebates for certain appliances so it is advisable to check your specific state and local programs.