Making Our Homes More Efficient: Clean Energy Tax Credits for Consumers

Source: [Making Our Homes More Efficient: Clean Energy Tax Credits for Consumers | Department of Energy|https://www.energy.gov/policy/articles/making-our-homes-more-efficient-clean-energy-tax-credits-consumers]
Office of Policy
December, 21 2022
UPDATED JULY 2024 

EQUIPMENT TYPE	TAX CREDIT AVAILABLE FOR 2023-2032 TAX YEARS 	
Home Clean Electricity Products 	
Solar (electricity) 	30% of cost 	
Fuel Cells  		
Wind Turbine  		
Battery Storage 		
Heating, Cooling, and Water Heating 	
Heat pumps 	30% of cost, up to $2,000 per year 	
Heat pump water heaters 		
Biomass stoves 		
Geothermal heat pumps  	30% of cost  	
Solar (water heating)  		
Efficient air conditioners* 	30% of cost, up to $600 	
Efficient heating equipment* 		
Efficient water heating equipment* 	30% of cost, up to $600 	
Other Energy Efficiency Upgrades 	
Electric panel or circuit upgrades for new electric equipment* 	30% of cost, up to $600 	
Insulation materials* 	30% of cost 	
Windows, including skylights* 	30% of cost, up to $600 	
Exterior doors* 	30% of cost, up to $500 for doors (up to $250 each) 	
Home Energy Audits* 	30% of cost, up to $150 	
Home Electric Vehicle Charger 	30% of cost, up to $1,000 ** 	
* Subject to cap of $1200/year 
** See eligibility requirements from IRS here and a map of eligible locations	
Q: Who is eligible for tax credits? 
A: Homeowners, including renters for certain expenditures, who purchase energy and other efficient appliances and products. 
Q: What do consumers do to get the credit(s)? 
A: Fill out IRS Form 5695, following IRS instructions, and include it when filing your tax return. Include any relevant product and services receipts. 
Q: Are there limits to what consumers can claim? 
A: Consumers can claim the same or varying credits year after year with new products purchased, but some credits have an annual limit. See the table above. 
Q: How do I know if my Home Energy Audit is eligible for a credit? 
A: Consumers can visit this IRS page on the Energy Efficient Home Improvement Credit. 
Q: What products are eligible for tax credits? 
•	Home clean electricity products 
o	Solar panels for electricity from a provider in your area. 
o	Home back-up power battery storage with capacity of 3 kWh or greater. 
•	Heating, cooling, and water heating 
o	Electric or natural gas heat pumps; electric or natural gas heat pump water heaters; central air conditioners; natural gas or propane or oil water heaters; natural gas or propane or oil furnaces or hot water boilers that meet or exceed the specific efficiency tiers established by the Consortium for Energy Efficiency. Eligible products here: CEE Directory. 
o	Solar water heating products that are certified for performance by the Solar Rating Certification Corporation or comparable entity endorsed by the state government in which product is installed. See: https://solar-rating.org. 
•	Other energy efficiency upgrades 
o	Oil furnaces or hot water boilers if they meet or exceed 2021 Energy Star efficiency criteria and are rated by the manufacturer for use with fuel blends at least 20% of the volume of which consists of an eligible fuel. See: https://www.energystar.gov/products. 
o	Panelboards, sub-panelboards, branch circuits, or feeders that are installed according to National Electrical Code and have load capacity of 200 amps or more. 
o	Insulation materials and systems that meet International Energy Conservation Code standards. See: Building Energy Codes Program. 
o	Exterior windows that meet Energy Star’s Most Efficient requirements. See: https://www.energystar.gov/products/most_efficient.