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The Energy Efficiency tax Credit (25C) is creating more job opportunities
Arlen Conan
Written By: Arlen Conan Last Update: May 16, 2025

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The Energy Efficiency tax Credit (25C) is creating more job opportunities

The current job market is a little chaotic. Looking around, companies are "recruiting" everywhere, but it seems that no one can find a job. However, the Energy-efficient Home Improvement Tax Credit (also known as the 25C tax credit) does more than just help homeowners save money on energy upgrades. A recent report by Rewiring America discussed how this federal incentive measure has promoted the demand for energy-efficient housing improvements, which in turn has driven a large number of job opportunities in manufacturing, installation, distribution and local small businesses.

Under our current economic situation, this is big news. When homeowners apply for a 25-degree Celsius tax credit, such as better insulation materials, energy-efficient doors and Windows, or updated heating and cooling systems, they can save on taxes (according to data from the US Treasury Department, by 2023, they can save an average of $880 in taxes). But these savings are only the beginning.

"Reinventing America" found that for every $1 saved through the 25C tax credit, consumer spending increases by $10 accordingly. This kind of expenditure has a ripple effect throughout the economy, supporting approximately 240,000 American jobs. These are not abstract numbers - they represent real opportunities for workers in all walks of life.

Take the installation work as an example. Promoting energy upgrading has supported approximately 41,000 local installation projects across the country. These people include HVAC technicians, electricians and contractors, who install everything from heat pumps to insulation and upgraded electrical panels. This is a stable job and happens to make the family more efficient and comfortable.

Then there is manufacturing. The demand for more efficient home systems means that factories that produce products that people are now more likely to purchase are busier. This provides support for 37,000 manufacturing jobs, including those in the manufacturing of insulating materials, water heaters, heating and cooling systems - all of which are in the United States

The business in distribution is also growing. According to "Reinventing America", the credit supported 21,000 jobs in the transportation and retail industries. Think of the truck drivers transporting HVAC and water heaters, or the workers storing shelves in your local hardware or home appliance store.

Supporting all this are 143,000 new jobs in small businesses and the service industry, which ensure the smooth operation of everything. Whether it is a family logistics company or a community contractor, the surge in home renovation activities has given them a reason to recruit, expand or maintain operations.

David Friedman, senior director of federal policy at Rewiring America, said: "Consumers are the engine of our economy." The family is the engine of the economy. 25C can help us accelerate the engine.

Friedman also pointed out that these jobs depend on the demand. "Only when people purchase these products will jobs in the equipment manufacturing industry exist," he said. These tax credits support consumer spending, which in turn supports the jobs of truck drivers transporting equipment, those selling equipment in retail stores, and those installing equipment in communities.

The 25C tax credit has also proven to be a valuable tool for contractors and small business owners. Many people take it as a selling point to help homeowners understand the economic benefits of upgrading their houses. This is conducive to the development of enterprises and the attraction of new customers, especially when the rising energy costs make efficiency more attractive.

At its core, the 25C tax credit is not merely about energy efficiency - it is about building a stronger economy. By helping ordinary people improve their homes, it creates stable and well-paid jobs and helps local businesses thrive. This is a win-win situation for both homeowners and workers.

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