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HR 616119th CongressIn Committee
To amend the Internal Revenue Code of 1986 to double the dollar limitation for the energy efficient home improvement credit with respect to heat pumps, heat pump water heaters, biomass stoves, and boilers.
Introduced: Jan 22, 2025
Standard Summary
Comprehensive overview in 1-2 paragraphs
This bill would double the maximum federal dollar limit for the energy efficient home improvement credit (the 25C credit) specifically for four categories: heat pumps, heat pump water heaters, biomass stoves, and boilers. The cap would rise from $2,000 to $4,000. The change applies to taxable years beginning after December 31, 2024 (i.e., starting with the 2025 tax year). Other provisions of the energy efficiency credit would remain unchanged; the bill only increases the dollar limit for these four item categories.
Key Points
- 1Increases the cap for the energy efficient home improvement credit (IRC 25C(b)(5)) from $2,000 to $4,000.
- 2Applies specifically to heat pumps, heat pump water heaters, biomass stoves, and boilers.
- 3Effective for taxable years beginning after December 31, 2024 (starting with 2025 tax year).
- 4Does not change which items qualify or the underlying credit mechanics beyond the higher cap.
- 5Status: introduced in the House (H.R. 616), referred to the Committee on Ways and Means; sponsor listed as Mr. Gottheimer, with no Senate text yet.
Impact Areas
Primary group/area affected: Homeowners and long-term occupants undertaking qualifying energy-efficient improvements (heat pumps, heat pump water heaters, biomass stoves, boilers) who itemize or claim the 25C credit on their federal tax return.Secondary group/area affected: HVAC, heating equipment manufacturers and installers, and energy retrofit contractors who work on these specific technologies.Additional impacts:- Potentially higher tax credits claimed for eligible projects, which could influence decisions to install or upgrade these systems.- Federal budget impact as a tax expenditure (reduces federal revenue) due to a larger credit cap.- Interaction with broader energy and climate policy tools (e.g., other IRA or energy credit provisions) may affect overall incentives for energy efficiency investments.
Generated by gpt-5-nano on Nov 19, 2025