Finance & Career
Home Energy Tax Credits
1 min read
If you make energy improvements to your home, tax credits are available for a portion of qualifying expenses. To claim the credits, homeowners who improve their primary residence may find the most opportunities. However, renters may also qualify for these credits. If you have questions about qualifying residences, detailed information can be found through the Internal Revenue Service (IRS) frequently asked questions web page at www.irs.gov. The detailed credits are listed in table 1. To claim home energy tax credits, fill out IRS Form 5695. The IRS provides more information about home energy tax credits on their website.
Table 1. Tax Credit Details
1 Subject to cap of $1200/year
2 The IRS will soon publish further information on eligibility requirements related to home electric vehicle chargers. However, that credit is intended for individuals and businesses in nonurban or low-income communities.
2 The IRS will soon publish further information on eligibility requirements related to home electric vehicle chargers. However, that credit is intended for individuals and businesses in nonurban or low-income communities.
| Equipment Type | Tax Credit Available for 2022 Tax Year | Tax Credit Available for 2023-2032 Tax Years |
|---|---|---|
| Home Clean-Electricity Products | ||
| Solar (electricity) | ||
| Fuel cells | 30% of cost | |
| Wind turbine | ||
| Battery storage | N/A | 30% of cost |
| Heating, Cooling, and Water Heating | ||
| Heat pumps | ||
| Heat pump water heaters | $300 | 30% of cost, up to $2,000 per year |
| Biomass stoves | ||
| Geothermal heat pumps | 30% of cost | |
| Solar (water heating) | 30% of cost | |
| Efficient air conditioners1 | $300 | 30% of cost, up to $600 |
| Efficient heating equipment1 | 30% of cost, up to $600 | 30% of cost, up to $600 |
| Efficient water heating equipment1 | $150 | 30% of cost, up to $600 |
| Other Energy Efficiency Upgrades | ||
| Electric panel or circuit upgrades for new electric equipment1 | N/A | 30% of cost, up to $600 |
| Insulation materials1 | 10% of cost | 30% of cost |
| Windows, including skylights1 | 10% of cost | 30% of cost, up to $600 |
| Exterior doors1 | 10% of cost | 30% of cost, up to $500 for doors (up to $250 each) |
| Home energy audits1 | N/A | 30% of cost, up to $150 |
| Home electric vehicle charger | 30% of cost, up to $1,000 | 30% of cost, up to $1,0002 |