Residential Clean Energy Tax Credits

Under the Inflation Reduction Act, the following federal tax credits are applied for residential homeowners who purchase and install clean energy equipment and appliances as follows. These credits and rebates apply to the construction, installation, electric upgrades and cost of all hardware and equipment needed.

Solar, Wind, Battery Equipment Credit

This credit applies to the cost of installing solar, wind, fuel cell, or energy storage batteries (> 3 kWH):

** 30% of total cost **

Heat Pump Credit

This credit applies to the cost of installing an electric or natural gas heat pump, heat pump water heater, or biomass stove and boiler.

** Up to $2,000 credit**

Energy Efficiency Credits

This credit has a $1,200 annual limit for the following high-efficiency items:

· $600 for exterior windows and skylights
· $250 for an exterior door ($500 total for all exterior doors)
· $150 for home energy audit

High-efficiency Rebates

Although not a tax credit, the High-Efficiency Electric Home Rebate Program provide rebates to low- and middle-income families who purchase energy-efficient electric appliances. To qualify for a rebate, your family's total annual income must be less than 150% of the median income where you live.

· $8,000 for a heat pump for space heating or cooling
· $1,750 for a heat pump water heater
· $840 for a stove, cooktop, range, oven, or heat pump clothes dryer
· $4,000 for an electric load service center upgrade
· $2,500 for electric wiring
· $1,600 for insulation, air sealing, and ventilation