In 2005, Congress established a number of energy-efficiency tax incentives related to housing. These policies include the tax code section 45L credit for construction of energy-efficient homes, the 25C credit for retrofitting homes, and the 25D credit for the installation of power production property in new and existing homes.
The 25C credit is available for existing homes and homeowners and may receive a tax credit worth 10% of the cost of energy-efficient improvements up to $500. This tax credit expires December 31, 2013.
Homeowners that have taken advantage of this tax credit spent $7.8 billion on energy-efficient windows by 2.2 million homeowners. Energy efficient natural gas, propane, and oil powered water heaters and furnaces were second, with $5.3 billion in qualified expenditures by almost 1.4 million taxpayers. While 2.1 million taxpayers spent $3.5 billion on upgrading insulation in their homes.