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
Fuel Cells
Wind Turbine
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
Biomass stoves
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
* Subject to cap of $1200/year

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.