IRS Publication 5978 – Are you looking to lower your energy bills while claiming a federal tax credit? IRS Publication 5978 provides the official step-by-step instructions for claiming the home energy audit portion of the Energy Efficient Home Improvement Credit. This targeted credit offers up to $150 (30% of qualified costs, capped at $150) for a professional home energy audit performed on your primary U.S. residence.
Published in June 2024 (Catalog Number 95022C), Publication 5978 focuses exclusively on home energy audits as part of the broader Inflation Reduction Act-enhanced credit available for improvements placed in service from January 1, 2023, through December 31, 2025. Download the official PDF here: https://www.irs.gov/pub/irs-pdf/p5978.pdf (Spanish version also available).
This guide draws directly from IRS Publication 5978, the main Energy Efficient Home Improvement Credit page, Form 5695 instructions (2025), and related IRS resources (all updated as of late 2025) to ensure accuracy.
What Is the Energy Efficient Home Improvement Credit?
The Energy Efficient Home Improvement Credit (IRC Section 25C) is a nonrefundable tax credit that reimburses 30% of qualified expenses for energy-saving upgrades to your primary residence (existing home in the United States).
Key annual limits (no lifetime cap):
- Up to $1,200 total for building envelope items (doors, windows, skylights, insulation, air sealing) + home energy audits.
- Home energy audits: capped at $150.
- Exterior doors: $250 per door / $500 total.
- Windows/skylights: $600 total.
- Additional $2,000 for heat pumps, heat pump water heaters, and biomass stoves/boilers.
Home energy audits qualify independently within the $1,200 bucket. You can combine an audit with other improvements in the same year for maximum savings (up to $3,200 total credit when including high-efficiency equipment).
Important 2026 Update: The credit ends for any property or audits placed in service after December 31, 2025. If you had a qualifying audit in 2025, you can still claim it on your 2025 tax return (filed in 2026).
Does a Home Energy Audit Qualify for the Tax Credit?
Yes — but only if it meets strict IRS requirements:
- Performed on your main home (primary residence you live in most of the time) located in the United States.
- Existing home only (not new construction).
- Conducted by a Qualified Home Energy Auditor (or under their direct supervision).
- Includes a full inspection + written report that identifies the most significant and cost-effective energy efficiency improvements, with estimated energy and cost savings for each.
- Consistent with industry best practices.
Renters can claim it if the home is their principal residence. Landlords and owners of second homes or vacation properties cannot.
Step-by-Step Guide to Claiming the Credit (Straight from IRS Publication 5978)
STEP 1: Check eligibility of your home
- Located in the United States?
- Existing home (not newly built)?
- Your primary residence (owned and used by you)?
STEP 2: Complete the audit
Hire a qualified home energy auditor certified by a U.S. Department of Energy-recognized program. Find the full list here: DOE Qualified Certification Programs for Section 25C.
STEP 3: Get proper documentation
Keep these records (do not attach to your return, but retain for at least 3 years in case of audit):
- Paid invoice/bill showing cost of the audit.
- Written report prepared and signed by the qualified auditor, including:
- Auditor’s full name and Employer Identification Number (EIN) or other taxpayer ID.
- Attestation that the auditor is certified by a qualified program.
- Name of the specific qualified certification program.
- Date of the audit.
- Address of the home audited.
STEP 4: File Form 5695 with your tax return
Report the credit on Form 5695, Residential Energy Credits (Part II) when you file for the year the audit was conducted.
- Line 26a: Confirm qualified audit (Yes/No).
- Line 26b: Total cost paid for the audit.
- Line 26c: Credit = 30% of cost, but do not enter more than $150.
You can claim the credit even if you don’t itemize deductions.
Credit Amount Example
- Audit cost: $400 → Credit = 30% × $400 = $120.
- Audit cost: $600 → Credit = 30% × $600 = $180, but capped at $150.
- Audit cost: $300 + windows/insulation → Combine within the $1,200 overall limit.
Frequently Asked Questions (FAQs)
Can I claim the audit credit in 2026?
No new audits qualify after December 31, 2025. File any 2025 claims on your 2025 return.
Do labor costs count?
Yes — the full cost of a qualifying audit (including the auditor’s fee) is eligible.
What if I receive a state or utility rebate?
Subtract non-taxable rebates from your qualified expenses before calculating the credit.
Do I need manufacturer certification?
No — home energy audits are exempt from the qualified manufacturer/PIN requirements that apply to many other 25C items in 2025.
Can multiple people claim on the same home?
Joint owners allocate based on amounts each paid and attach a statement.
Why Get a Home Energy Audit Now?
A professional audit often pays for itself quickly by revealing the highest-ROI upgrades (insulation, sealing, HVAC). Pairing it with the tax credit makes it even more affordable — and the resulting improvements can qualify for additional credits in the same year.
Pro Tip: Always verify your auditor’s certification on the DOE list before scheduling.
Ready to Claim Your Credit?
- Download IRS Publication 5978 → Direct PDF
- Download Form 5695 and instructions → IRS.gov
- Consult a tax professional or use IRS Free File/Taxpayer Assistance if needed.
By following IRS Publication 5978 exactly, you can confidently claim up to $150 back on your 2025 taxes for a qualifying home energy audit. Act before the December 31, 2025 deadline to maximize your savings and make your home more energy-efficient.
Sources (all official and current as of 2025–2026):
- IRS Publication 5978 (6-2024)
- IRS Energy Efficient Home Improvement Credit main page (updated Oct 24, 2025)
- Instructions for Form 5695 (2025)
- IRS FAQs on Section 25C (updated Jan 2025)
- U.S. Department of Energy auditor certification programs
For personalized advice, consult a qualified tax professional or visit IRS.gov. This article is for informational purposes only and is not tax or legal advice.