Home Energy Credits

The Inflation Reduction Act of 2022 implemented some new and changed other energy efficiency credits for home improvements. Certain types of home energy efficient upgrades, including exterior doors, windows, skylights, and insulation, central air conditioners, water heaters, furnaces, boilers and heat pumps, biomass stoves and boilers, and home energy audits, qualify for a credit up to 30% of the cost of the expenses, with a max of $1200 (heatpumps, biomass stoves, and boilers, have a separate limit of $2000) with no lifetime max. Further, other types of home energy efficient upgrades, such as solar, wind and geothermal power generation, solar water heaters, fuel cells, and battery storage are eligible for a credit of up to 30% with no lifetime limit or annual max. For more information on what types of property qualifies, visit energy.gov/save.