Saving money is not just about cutting expenses. It is also about knowing where to claim value. Federal tax credits and rebates are designed to reward smart choices, whether you are upgrading your home, supporting your family, or investing in your future. These programs can reduce your tax bill, increase your refund, and help you stretch your budget further.

Here are the most valuable federal credits and rebates available.

1. Energy Efficient Home Improvement Credit

If you made energy-saving upgrades to your home, you may qualify for a tax credit of up to $3,200 per year. This credit covers 30 percent of the cost of improvements like:

• Insulation and air sealing
• Energy-efficient windows and doors
• Heat pumps and central air systems
• Home energy audits

There are caps for specific items. For example, doors are limited to $250 each, up to $500 total. This credit is available through 2032, but the savings start as soon as you file.

2. Residential Clean Energy Credit

This credit supports homeowners who install solar panels, wind turbines, geothermal systems, or battery storage. You can claim 30 percent of the total cost, including labor and installation.

The credit applies to both new builds and retrofits. It is available through 2034, with phase-outs beginning in 2033. If you are planning a clean energy upgrade, now is the time to act.

3. Electric Vehicle (EV) Tax Credit

Federal EV credits are still available in 2025, but eligibility depends on where the vehicle was assembled and where its battery components were sourced. If your car qualifies, you may receive up to $7,500 in tax credits.

Used EVs may also qualify for a credit of up to $4,000, depending on income and vehicle age. Check the IRS or Department of Energy websites for updated lists of eligible models.

4. Child and Dependent Care Credit

If you pay for child care so you can work or look for work, you may qualify for this credit. It covers up to 35 percent of eligible expenses, with a maximum of $3,000 for one child or $6,000 for two or more.

Qualifying expenses include daycare, after-school programs, and summer camps. You must report the care provider’s information on your tax return and have earned income during the year.

5. Saver’s Credit

This credit rewards low- and moderate-income taxpayers who contribute to retirement accounts. If you put money into a 401(k), IRA, or similar plan, you may receive a credit of up to $1,000 for individuals or $2,000 for married couples.

The Saver’s Credit is in addition to any tax deductions you receive for retirement contributions. It is a strong incentive to start saving, especially if you are building your financial foundation.

6. Premium Tax Credit

If you buy health insurance through the federal marketplace, you may qualify for the Premium Tax Credit. This credit helps lower your monthly premiums based on income and household size.

You can apply the credit in advance to reduce your monthly payments or claim it when you file your taxes. It is designed to make health coverage more affordable for working families.

7. American Opportunity Tax Credit (AOTC)

The AOTC offers up to $2,500 per student for qualified college expenses during the first four years of higher education. Eligible expenses include tuition, books, and required supplies.

You must be enrolled at least half-time and meet income limits. Forty percent of the credit is refundable, which means you may receive money back even if you owe no taxes.

8. Lifetime Learning Credit

This credit provides up to $2,000 per return for tuition and fees related to job training, certification, or continuing education. Unlike the AOTC, there is no limit on the number of years you can claim it.

It is ideal for adults returning to school or upgrading their skills. Income limits apply, so check IRS guidelines before filing.

Federal tax credits and rebates are not just for accountants. They are for anyone who wants to make smarter financial decisions. Whether you are investing in your home, supporting your family, or planning for retirement, these programs help you keep more of what you earn.

Before filing your taxes, review your eligibility and gather the right documentation. A few minutes of planning could lead to hundreds, or even thousands in savings.