Energy Credit - What Qualifies

Per the IRS an energy credit is a nonrefundable “credit” that can be applied for with the filing of your individual/business tax filing. As of the close of the 2022 tax year there is a 30-percent credit for certain qualified expenditures made by a taxpayer for residential energy efficient property. The two main categories we see normally see are:

Residential energy property – This is limited to the lower of 30% of the item or $600 per item

·       central air conditioners;

·       natural gas, propane, or oil water heaters;

·       natural gas, propane, or oil furnaces and hot water boilers; and

·       improvements to or replacements of panelboards, sub-panelboards, branch circuits, or feeders that are installed along with building envelope components

Residential Clean Energy Property - 30% of cost (no limit)

• solar electric property expenditures (solar panels);

• solar water heating property expenditures (solar water heaters);

• fuel cell property expenditures. 

• small wind energy property expenditures (wind turbines);

• geothermal heat pump property expenditures; and

• battery storage technology expenditures.