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IRS: Home improvements could help taxpayers qualify for home energy credits

Posted by: Zaher Fallahi
Posted On: May 24, 2024

IR-2024-137, May 9, 2024

Energy Efficient Home Improvement Credit

Taxpayers that make qualified energy-efficient improvements to their home after Jan. 1, 2023, may qualify for a tax credit up to $3,200.

As part of the Inflation Reduction Act, beginning Jan. 1, 2023, the credit equals 30% of certain qualified expenses:

The maximum credit that can be claimed each year is:

The credit is nonrefundable which means taxpayers cannot get back more from the credit than what is owed in taxes and any excess credit cannot be carried to future tax years.

Residential Clean Energy Credit

Taxpayers who invest in energy improvements for their main home, including solar, wind, geothermal, fuel cells or battery storage, may qualify for an annual residential clean energy tax credit.

The Residential Clean Energy Credit equals 30% of the costs of new, qualified clean energy property for a home in the United States installed anytime from 2022 through 2032.

Qualified expenses include the costs of new, clean energy equipment including:

Clean energy equipment must meet the following standards to qualify for the Residential Clean Energy Credit:

This credit has no annual or lifetime dollar limit except for fuel cell property. Taxpayers can claim this credit every year they install eligible property on or after Jan. 1, 2023, and before Jan. 1, 2033.

This is a nonrefundable credit, which means the credit amount received cannot exceed the amount owed in tax. Taxpayers can carry forward excess unused credit and apply it to any tax owed in future years.

Good recordkeeping

Taxpayers are encouraged to keep good records of purchases and expenses. This will assist in claiming the applicable credit during tax filing season.

End of IRS Press Release


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