Home energy tax credits
If you make energy improvements to your home, tax credits are available for a portion of qualifying expenses. The credit amounts and types of qualifying expenses were expanded by the Inflation Reduction Act of 2022.
We'll help you compare the credits and decide whether they apply to expenses you've already paid or will apply to improvements you're planning for the future.
Who can claim the credits
You can claim either the Energy Efficient Home Improvement Credit or the Residential Clean Energy Credit for the year when you make qualifying improvements.
Homeowners who improve their primary residence will find the most opportunities to claim a credit for qualifying expenses. Renters may also be able to claim credits, as well as owners of second homes used as residences.
The credits are never available for improvements made to homes that you don't use as a residence.
Energy Efficient Home Improvement Credit
These expenses may qualify if they meet requirements detailed on energy.gov:
- Exterior doors, windows, skylights and insulation materials
- Central air conditioners, water heaters, furnaces, boilers and heat pumps
- Biomass stoves and boilers
- Home energy audits
The amount of the credit you can take is a percentage of the total improvement expenses in the year of installation:
- 2022: 30%, up to a lifetime maximum of $500
- 2023 through 2032: 30%, up to a maximum of $1,200 (heat pumps, biomass stoves and boilers have a separate annual credit limit of $2,000), no lifetime limit
Residential Clean Energy Credit
These expenses may qualify if they meet requirements detailed on energy.gov:
- Solar, wind and geothermal power generation
- Solar water heaters
- Fuel cells
- Battery storage (beginning in 2023)
The amount of the credit you can take is a percentage of the total improvement expenses in the year of installation:
- 2022 to 2032: 30%, no annual maximum or lifetime limit
- 2033: 26%, no annual maximum or lifetime limit
- 2034: 22%, no annual maximum or lifetime limit
Resources
- Inflation Reduction Act of 2022
- Frequently asked questions about energy efficient home improvements and residential clean energy property credits
- Credits and deductions under the Inflation Reduction Act of 2022
- Interactive guide to energy credits available under the Inflation Reduction Act
- 5 ways to save in 2023 with home energy tax credits
- Publication 5797, Home Energy Tax Credits PDF
- Publication 5886-A, Clean Energy Tax Incentives for Individuals PDF
- Publication 5967, Energy Efficient Home Improvements Credit (25C) PDF
- Publication 5968, Residential Clean Energy Credit (25D) PDF
- Publication 5976, How to claim an Energy Efficient Home Improvement tax credit RESIDENTIAL ENERGY PROPERTY PDF
- Publication 5977, How to claim a Residential Clean Energy tax credit PDF
- Publication 5978, How to claim an Energy Efficient Home Improvement tax credit HOME ENERGY AUDIT PDF
- Publication 5979, How to claim an Energy Efficient Home Improvement tax credit EXTERIOR DOORS, WINDOWS, SKYLIGHTS AND INSULATION MATERIALS PDF