A professional home energy audit tells you exactly where your home wastes energy. If you paid for one by December 31, 2025, you can claim 30% of the cost back on your taxes, up to $150.

Credit Expired December 31, 2025

The Energy Efficient Home Improvement Credit expired on December 31, 2025 due to the "One Big Beautiful Bill" (Public Law 119-21). If you paid for a qualifying energy audit by that date, you can still claim the credit on your 2025 tax return. (IRS FAQ on Public Law 119-21)

Quick Summary

Credit: 30% of audit cost, max $150
No QMID required for energy audits
Must be performed by certified home energy auditor
Must result in written report
Part of $1,200 annual cap shared with windows, doors, insulation
Great first step before making energy improvements

What Qualifies

The IRS has specific requirements for energy audits to qualify for the credit.

Qualifying Audit Requirements

Your energy audit must meet three criteria:

Inspected your main home in the United States
Performed by a certified home energy auditor
Resulted in a written report

The auditor certification matters. The IRS requires certification from recognized organizations, typically:

BPI (Building Performance Institute) certified
RESNET (Residential Energy Services Network) certified
Equivalent state or utility certification programs

A walk-through by an unlicensed contractor doesn't count. The auditor must have formal training in building science and energy efficiency.

What an Energy Audit Includes

A qualified home energy audit typically includes:

Visual inspection:

Attic and basement insulation levels
Air leakage points (doors, windows, penetrations)
HVAC system condition
Water heater efficiency
Ductwork condition
Thermostat settings

Diagnostic testing:

Blower door test (measures whole-house air leakage)
Thermal imaging (identifies insulation gaps)
Combustion safety testing (gas appliances)
Duct leakage testing

Written report with:

Current energy usage baseline
Prioritized list of improvements
Estimated cost savings per improvement
Payback period calculations
Utility rebate availability

The report tells you exactly what to fix and in what order. Many homeowners save thousands by following the audit recommendations.

Credit Amount

Tax Credit Calculator

Total Heat Pump Cost

Utility Rebates Received (if any)

Eligible expense:$0.00

Credit rate:30%

Maximum credit:$150

Your estimated credit:$0.00

This calculator provides an estimate. Your actual credit may vary based on your tax situation. The credit is non-refundable and cannot exceed your tax liability.

The math is simple: 30% of your audit cost, capped at $150.

Examples:

Audit Cost	Credit (30%)	Amount You Get
$300	$90	$90
$400	$120	$120
$500	$150	$150 (max)
$600	$180	$150 (max)

Most professional energy audits cost $300 to $500. You'll receive $90 to $150 back on your taxes.

The $1,200 Annual Cap

The audit credit shares a combined $1,200 annual limit with other home improvements.

Items Sharing the $1,200 Cap

Equipment	Credit Limit	Notes
Insulation/Air Sealing	$1,200	30% of cost, Line 18
Doors (exterior)	$500	30% of cost, Line 19
Windows/Skylights	$600	30% of cost, Line 20
Central AC	$600	30% of cost, Line 22
Gas/Oil Water Heater	$600	30% of cost, Line 23
Gas/Oil Furnace/Boiler	$600	30% of cost, Line 24
Electrical Panel Upgrade	$600	30% of cost, Line 25
Home Energy Audit	$150	30% of cost, Line 26

Combined annual limit for all these items: $1,200 (Line 28). Heat pumps and heat pump water heaters have a separate $2,000 limit (Line 29).

If you claim $600 for windows and $150 for an audit, you've used $750 of your $1,200 cap. You have $450 remaining for doors, insulation, or other qualifying improvements.

Form 5695 Line 26

The audit credit appears on Form 5695, Part II, Section B, Line 26. Three fields to complete:

Line 26a: Qualifying Question

Answer "Yes" or "No" to this question:

Did you pay for a home energy audit that inspected or tested your main home in the United States and resulted in a written report prepared by a certified home energy auditor?

If yes, proceed to 26b. If no, skip Line 26 entirely.

Line 26b: Audit Cost

Enter the amount you paid for the energy audit. Include:

Auditor's fee
Diagnostic testing costs (blower door, thermal imaging, etc.)
Written report preparation

Do not include:

Repair costs or improvement costs (those go on other lines)
Follow-up visits after improvements
Consulting fees unrelated to the initial audit

Line 26c: Credit Calculation

Multiply Line 26b by 30% (0.30). Enter the result or $150, whichever is less.

Example: You paid $450 for an energy audit.

$450 × 0.30 = $135
Enter $135 on Line 26c

This amount flows into Line 27 (subtotal) and then Line 28 (subject to the $1,200 cap).

No QMID Required

Simpler Than Equipment Credits

Energy audits do NOT require a QMID (Qualified Manufacturer Identification Number). Just enter the cost and calculate 30%.

QMIDs are only needed for equipment like heat pumps, AC units, water heaters, and furnaces. Services like energy audits don't have manufacturers, so no QMID exists.

You still need documentation (receipt and written report), but the Form 5695 filing is simpler.

Why Get an Audit First

An energy audit is the smartest first step before making improvements. Here's why:

Prevents wasted money: You might think you need new windows when the real problem is attic insulation. An audit finds the actual issues.

Prioritizes improvements: A good report ranks recommendations by cost-effectiveness. Fix the biggest energy drains first.

Qualifies for other rebates: Many utility rebate programs require an audit before approving incentives for insulation or HVAC upgrades.

Maximizes credit value: If the audit recommends $10,000 in improvements eligible for credits, the $150 audit credit is a small investment to claim thousands more.

Baseline for future comparison: The report documents current energy usage. After improvements, you can measure actual savings.

Finding a Certified Auditor

Look for auditors certified by recognized organizations:

Check BPI Certification

Visit the Building Performance Institute directory to find BPI-certified professionals in your area. Look for "Building Analyst" or "Energy Auditor" certifications.

Check RESNET Certification

Search the RESNET directory for certified Home Energy Rating System (HERS) Raters. HERS raters perform comprehensive energy audits.

Ask Your Utility

Many utilities maintain lists of approved auditors or offer subsidized audit programs. Some provide audits for free or at reduced cost.

Verify Credentials

Before hiring, confirm:

Current certification from BPI, RESNET, or equivalent
Liability insurance
References or reviews from past clients
Sample audit reports

Typical audit costs: $300 to $600, depending on home size and complexity. Larger homes or those with multiple HVAC zones cost more.

What to Expect During the Audit

A professional energy audit typically takes 2 to 4 hours. Here's the process:

Pre-audit interview (15 minutes):

Discuss comfort issues (drafts, hot/cold rooms)
Review utility bills
Identify recent improvements or repairs

Visual inspection (60-90 minutes):

Attic, basement, crawl space
Insulation levels and condition
HVAC equipment age and condition
Water heater type and settings
Windows and doors
Appliances

Diagnostic testing (45-60 minutes):

Blower door test (measures air leakage)
Thermal imaging (finds insulation gaps)
Combustion safety testing (gas appliances)
Duct leakage testing (if accessible)

Report delivery (1-2 weeks):

Written recommendations prioritized by cost-effectiveness
Estimated costs for each improvement
Projected energy savings
Available rebates and incentives

Documentation Requirements

Keep these records for at least 3 years after filing your tax return:

Required Documentation

Receipt or invoice showing payment amount and date
Written audit report with auditor's name and certification credentials
Completed Form 5695 showing Line 26 calculation
Proof of auditor certification (BPI, RESNET, or equivalent certificate)

The IRS can request these documents if your return is audited. Missing documentation could result in disallowed credits.

Stacking With Utility Programs

Many utilities offer rebates or free energy audits. How this affects your tax credit:

Free utility audit: If your utility provided a free audit, you paid $0. No credit available (30% of $0 = $0).

Subsidized audit: If you paid $100 for a normally $400 audit (utility covered $300), claim 30% of what you paid ($30 credit).

Full-price audit with utility rebate: Some utilities rebate you after you pay. If you paid $400 and received a $200 rebate, claim 30% of your net cost ($200 × 0.30 = $60).

IRS Note

Subtract any rebates or subsidies from your audit cost before calculating the credit. Your credit is based on your actual out-of-pocket expense.

Common Mistakes

Avoid These Errors

Using unlicensed auditors: Your neighbor's contractor can't just walk through and call it an "audit." The auditor must have formal certification (BPI, RESNET, etc.).

Missing the written report: A verbal recommendation doesn't count. The IRS requires a written report documenting findings and recommendations.

Claiming repeat audits: If you got an audit in 2024 and another in 2025, you can claim both (credit resets annually). But you can't claim multiple audits in the same year.

Including improvement costs: Line 26 is only for the audit cost itself. If the auditor installed insulation or made repairs, those costs go on different lines (18 for insulation, etc.).

Exceeding the $1,200 cap: Remember Line 26 shares the $1,200 annual limit with windows, doors, insulation, and other items. Check your combined total on Line 28.

Claiming the Credit

Complete Form 5695 following these steps:

Complete Section B Lines 21a-21c

Line 21a: Answer "Yes" (you installed qualifying property)
Line 21b: Answer "Yes" (property was placed in service this year)
Line 21c: Enter your main home address

Complete Line 26

Line 26a: Answer "Yes" (audit meets requirements)
Line 26b: Enter audit cost (e.g., $450)
Line 26c: Calculate credit (30% of 26b, max $150)

Calculate Lines 27-28

Line 27: Add lines 18b, 19h, 20d, 22d, 23d, 24d, 25e, and 26c
Line 28: Enter lesser of Line 27 or $1,200

Complete Remaining Lines

Add any Line 29 credits (heat pumps, etc.)
Complete worksheet for tax liability limit
Transfer final credit to Schedule 3, line 5b

When to Schedule an Audit

The best time for an energy audit depends on your plans:

Before making improvements: Get the audit first, then use recommendations to prioritize work. This prevents wasting money on the wrong fixes.

After buying a home: New homeowners should audit early to identify issues before problems worsen. You'll have a baseline for future improvements.

When comfort issues arise: Drafts, high bills, uneven temperatures, or HVAC struggles all signal audit-worthy problems.

Before winter or summer: Schedule audits during mild weather (spring or fall). This gives you time to complete recommended improvements before peak heating or cooling season.

Credit Expiration

No Longer Available for 2026+

The Energy Efficient Home Improvement Credit expired December 31, 2025. Energy audits completed in 2026 or later do not qualify for the credit.

If you completed an audit by December 31, 2025, you can still claim the credit on your 2025 tax return (filed by April 15, 2026, or with extension).

The credit was originally extended through 2032 by the Inflation Reduction Act, but Public Law 119-21 (the "One Big Beautiful Bill") terminated it early.

Official Resources

Form 5695 PDF

Download the official IRS form for energy credits

IRS.gov

Form 5695 Instructions

Detailed IRS instructions for completing Form 5695