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Residential Energy Credits

Energy Efficient Home Improvement Credit


Annual limitations. 

The following annual limitations apply:

  1. The combined credit for all energy efficient home improvements is limited to $1,200 per year, except for (6), below.

  2. The credit for the following is limited to $600 per year.

    1. Central air conditioners.

    2. Natural gas, propane, or oil water heaters.

    3. Natural gas, propane, or oil furnaces or hot water boilers.

    4. Improvements or replacement of panelboards, subpanelboards, branch circuits, or feeders.

    5. Windows and skylights.

  3. The credit for exterior doors is limited to $250 per year per door and $500 total for all doors.

  4. The credit for insulation and air sealing materials or systems specifically and primarily designed to reduce heat loss or gain is limited to $1,200 per year.

  5. The credit for home energy audits is limited to $150 per year.

  6. Notwithstanding numbers (1) through (2d), above, the credit allowed for heat pumps and heat pump water heaters, biomass stoves and boilers is limited to $2,000 per year.

Labor costs

Labor costs for installing items (1.7) through (9), above, do not qualify for the credit. Primary residence only. Items (1.7) through (10), above, only apply to costs associated with your main home.

Home energy audits 

A home energy audit includes a written report and inspection. Home energy audits must be conducted by a qualified home energy auditor.

Nonrefundable credit

Any excess credit cannot be applied to future tax years.

Residential Clean Energy Credit

If you invest in renewable energy for your home you may qualify for an annual residential clean energy tax credit.


Qualified expenses

Qualified expenses include the cost of new clean energy property including:

  • Solar electric panels.

  • Solar water heaters.

  • Wind turbines.

  • Geothermal heat pumps.

  • Fuel cells.

  • Battery storage technology (with a capacity of at least 3 kilowatt hours).

Credit amount

The credit equals 30% of the cost of new, qualified clean energy property installed for your home.

Limits for fuel cell property 

The credit for fuel cell property is limited to $500 for each half kilowatt of capacity.

Nonrefundable credit 

Any excess credit can be carried forward and applied to future tax years.

This page contains general information for taxpayers and should not be relied upon as the only source of authority. Taxpayers should seek professional tax advice for more information.

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