Energy-Efficient Upgrades That Qualify for Tax Credits in Pennsylvania

If you're planning a home renovation in the Greater Philadelphia area, you may be able to save money on both your energy bills and your taxes. Thanks to the Inflation Reduction Act and state-level programs, Pennsylvania homeowners can now access valuable tax credits and rebates for making energy-efficient home upgrades.

At Lapstone, we help our clients in neighborhoods like West Chester, Chestnut Hill, and South Jersey identify the best energy-smart improvements — and ensure they’re installed to code.

Here’s what you need to know:

What Upgrades Qualify for Tax Credits in 2025?

As of 2025, the federal government allows homeowners to claim credits for up to 30% of qualifying home upgrades, up to a capped amount per year. Here are some of the most common renovation features Lapstone clients are installing that may qualify:

1. Energy-Efficient Windows & Doors

Replacing outdated windows and doors can significantly reduce heating and cooling costs. ENERGY STAR®-certified windows and exterior doors may qualify for tax credits of up to $600 annually.

✔ Lapstone tip: Double-pane low-E windows are popular in older rowhomes and duplexes across Philadelphia for insulation and noise reduction.

2. Insulation Upgrades

Adding new insulation to attics, basements, and walls not only keeps your home more comfortable — it can also be eligible for up to $1,200 in tax credits per year.

We often recommend closed-cell spray foam or mineral wool in pre-war homes, especially those undergoing full gut renovations in neighborhoods like Germantown or Queen Village.

3. High-Efficiency HVAC Systems

Replacing an old furnace or central AC with a high-efficiency system can qualify for federal and Pennsylvania incentives. Look for ENERGY STAR-rated heat pumps, mini-splits, or geothermal units.

Tip: Ductless mini-split systems are perfect for rowhomes and additions where traditional ducting is impractical.

4. Solar Panels & Battery Storage

Solar energy systems remain one of the highest-value upgrades in terms of long-term savings. Federal tax credits for solar panels and battery systems remain at 30% through 2032.

Even if you’re not ready to install solar today, Lapstone can help pre-wire your home for future readiness.

5. Smart Thermostats & Energy Monitoring

Small upgrades like smart thermostats (e.g., ecobee or Nest) and energy usage monitors may qualify for rebates and make your home eligible for LEED or other sustainability certifications.

Why Energy Efficiency Pays Off

• Lower utility bills year-round

• Increased resale value for energy-conscious buyers

• Potential rebates from PECO, PGW, and state clean energy programs

• Federal tax credits through 2032 under the Inflation Reduction Act

Renovating for Efficiency with Lapstone

As a design-build renovation firm, Lapstone integrates energy-efficient solutions into kitchen remodels, bathroom renovations, and full-home upgrades across Philadelphia County and the surrounding suburbs.

Our project managers stay up to date on evolving rebate programs and coordinate with licensed electricians, HVAC pros, and energy auditors when needed.

🔍 Thinking of upgrading your home with energy efficiency in mind?→ Contact Lapstone for a free consultation and energy-smart renovation estimate.