Energy Efficient Home Credit in Illinois
The federal Energy Efficient Home Improvement Credit lets homeowners deduct 30% of qualifying upgrade costs, including heat pumps, insulation, and energy-efficient windows, up to an annual cap of $3,200 for 2025. The credit is nonrefundable and filed using IRS Form 5695.
Illinois homeowners face significant heating costs due to cold winters, making furnace replacements, heat pump installations, and insulation upgrades among the most common qualifying expenditures. ComEd and Nicor Gas both offer rebate programs that can be stacked alongside the federal credit.
Illinois does not have a direct state income tax credit that mirrors the federal energy improvement credit, but the Illinois Home Weatherization Assistance Program may provide additional support for eligible households. Keeping manufacturer certification documents and detailed contractor invoices is necessary to claim the full federal benefit.