Making Our Homes More Efficient: Energy Tax Credits for Consumers

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Visit our Energy Savings Hub to learn more about saving money on home energy upgrades, clean vehicles, and more.

UPDATED JULY 2024

Equipment TypeTax Credit Available for 2023–2032 Tax Years
Home Electricity Products
Solar (electricity)30% of cost
Fuel cells
Wind turbine
Battery storage
Heating, Cooling, and Water Heating
Heat pumps30% of cost, up to $2,000 per year
Heat pump water heaters
Biomass stoves
Geothermal heat pumps30% 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 charger30% of cost, up to $1,000 **

* Subject to cap of $1200/year 
** See eligibility requirements from IRS and a map of eligible locations

Frequently Asked Questions

  • A: Homeowners, including renters for certain expenditures, who purchase energy and other efficient appliances and products. 

  • A: Fill out IRS Form 5695, following IRS instructions, and include it when filing your tax return. Include any relevant product and services receipts. 

  • 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.

  • A: Consumers can visit this IRS page on the Energy Efficient Home Improvement Credit

    • Home 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: CEE Directory
      • 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. 
    • 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. 
      • 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
         
  • A: Ask a trusted contractor, plumber, or electrician. 

  • 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. See:  

  • A: If you're a little confused on the difference between the two, or don't know how they work—not to worry. Just review our video and go to /save and see which home energy upgrades are right for you.

     

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