back to Blog

Unlock Savings: Electrical Panel Upgrade Tax Credits in 2025

Electrician upgrading a home's electrical panel.

Upgrading your home’s electrical panel might not be the most glamorous home improvement, but it’s a smart move that can enhance safety, boost efficiency, and increase property value. In 2025, homeowners have an extra incentive to consider this upgrade: federal tax credits designed to make the investment more affordable.

Eligibility for Electrical Panel Upgrade Tax Credits in 2025

To qualify for the federal tax credit, your electrical panel upgrade must meet specific criteria:

  • Panel specifications: The new panel must have a load capacity of 200 amps or more and be installed in accordance with the National Electric Code (NEC). Most importantly, the upgrade must coincide with installing and using a qualified energy-efficient home improvement, such as a heat pump, central AC, furnace, or water heater.
  • Homeowner status: The credit applies to improvements made to your primary residence in the U.S. Both homeowners and renters can qualify, provided they bear the cost of the improvements. However, landlords cannot claim this credit for rental properties.
  • Timing: The tax credit is available for upgrades made between Jan. 1, 2023, and Dec. 31, 2032. Ensure your installation falls within this window to be eligible.

Potential Savings From Upgrading Your Electrical Panel

The federal tax credit allows you to claim 30% of the project cost, up to $600. This credit directly lowers the amount you owe in federal income taxes.

In addition to federal incentives, Seattle residents can tap into these state and local programs:

  • Seattle City Light offers rebates for various energy-efficient home improvements, which may include electrical upgrades when paired with other qualifying installations.
  • Washington State’s Home Energy Rebates programs provide additional financial assistance. These programs are expected to begin in early 2025, offering rebates for home electrification and energy efficiency measures.

Combining these incentives with federal tax credits greatly reduces the out-of-pocket cost of your electrical panel upgrade.

How To Take Advantage of Electrical Panel Tax Credits

To make sure your home improvement qualifies, follow these steps:

  • Hire a qualified electrician: Have your upgrade performed by a licensed professional who complies with the NEC. This ensures eligibility for the tax credit and guarantees electrical safety.
  • Document everything: Keep detailed installation records, including invoices, receipts, and permits. This documentation will be essential when filing your taxes.
  • Complete the appropriate forms: When tax season arrives, file IRS Form 5695 to claim the credit. Consult a tax professional if you have questions about the process.

Other Benefits of Electrical Panel Upgrades

Beyond tax savings, upgrading your electrical panel offers these additional perks:

  • Improved electrical safety: A modern panel reduces the risk of electrical fires and can handle the increased load from today’s energy-intensive appliances.
  • Enhanced energy efficiency: Upgraded panels can better support energy-efficient systems, lowering your utility bills.
  • Increased property value: Homebuyers want to see up-to-date electrical systems, meaning the upgrade could boost your property value.
  • Future-proofing your home: With the growing popularity of electric vehicles and smart home devices, a robust electrical system ensures you’re ready for whatever the future holds.

How Our Seattle Electricians Can Help

Upgrading an electrical panel requires precision, expertise, and compliance with safety standards. A licensed Seattle electrician can evaluate your current system, recommend the right upgrades, and ensure a code-compliant installation.

At As You Wish Electric, we take pride in being Seattle’s top-rated electricians. Since 2006, our licensed and highly trained team has delivered smart solutions to meet our customers’ needs. With upfront pricing, financing options, and your satisfaction guaranteed, we make the entire process smooth and stress-free.

If you’re ready to upgrade your electrical panel and claim your 2025 tax credit, we can help. Contact us to schedule an assessment in Seattle or the Greater Puget Sound area.

lamp.svg
Financing Options Available
make any electrical project in your
home a wish granted!

Featured Promotions

$50 Off Any Service

Cannot be combined with other offers. 1 per household. Residential use only. Show at time of service.

$200 Off Electrical Panel

Cannot be combined with other offers. 1 per household. Residential use only. Show at time of service.