|Equipment type||Tax Credit Available for 2022 Tax Year||Updated Tax Credit Available for 2023-2032 Tax Years|
|Home Clean Electricity Products|
|Solar (electricity)||30% of cost|
|Battery Storage||N/A||30% of cost|
|Heating, Cooling, and Water Heating|
|Heat pumps||$300||30% of cost, up to $2,000 per year|
|Heat pump water heaters|
|Geothermal heat pumps||30% of cost|
|Solar (water heating)|
|Efficient air conditioners*||$300||30% of cost, up to $600|
|Efficient heating equipment*|
|Efficient water heating equipment*||$150||30% of cost, up to $600|
|Other Energy Efficiency Upgrades|
|Electric panel or circuit upgrades for new electric equipment*||N/A||30% of cost, up to $600|
|Insulation materials*||10% of cost||30% of cost|
|Windows, including skylights*||10% of cost||30% of cost, up to $600|
|Exterior doors*||10% of cost||30% of cost, up to $500 for doors (up to $250 each)|
|Home Energy Audits*||N/A||30% of cost, up to $150|
|Home Electric Vehicle Charger||30% of cost, up to $1,000||30% of cost, up to $1,000 **|
|* Subject to cap of $1200/year
** The IRS will soon publish further information on eligibility requirements related to home electric vehicle chargers, but we know that credits are intended for residents in non-urban or low-income communities.
Frequently Asked Questions
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 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 consumers find qualified professionals to conduct home energy audits?
A: Visit our Professional Home Energy Assessments page.
Q: What products are eligible for tax credits?
- Home clean electricity products
- Solar panels for electricity from a provider in your area.
- Home back-up power battery storage with capacity of 3 kWh or greater.
- Heating, cooling, and water heating
- 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: https://cee1.org/node/729.
- 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
- 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.
- Panelboards, sub-panelboards, branch circuits, or feeders that are installed according to National Electrical Code and have load capacity of 200 amps or more.
- Insulation materials and systems that meet International Energy Conservation Code standards. See: Building Energy Codes Program.
- Exterior windows that meet Energy Star’s Most Efficient requirements. See: https://www.energystar.gov/products/most_efficient.
Q: What if I have questions about products, standards, codes or other eligibility referenced above?
A: Ask a trusted contractor, plumber, or electrician.
Q: Where do I get even more detailed information?
A: More information on the energy efficient home improvement credit and residential clean energy property credit is available for tax professionals, building contractors, and others at IRS releases frequently asked questions about energy efficient home improvements and residential clean energy property credits | Internal Revenue Service. See: https://www.irs.gov/newsroom/irs-releases-frequently-asked-questions-about-energy-efficient-home-improvements-and-residential-clean-energy-property-credits.