You may be able to claim the Residential Energy credit if you made energy saving improvements to your US based home during the tax year. For tax year 2021, the only credits allowed are for solar, wind, geothermal and fuel-cell technology.
Energy Saving Improvements included for tax year 2021 are listed below:
- Solar Electric Property Costs
- Solar Water Heating Property Costs
- Small Wind Energy Property Costs
- Geothermal Heat Pump Property Costs
- Fuel Cell Property Costs
The Taxpayer Certainty and Disaster Tax Relief Act of 2019 extended the Nonbusiness Energy Property Credit to property placed in service after 2017 and before 2021. The act also:
- Provides that an electric heat pump water heater must yield a Uniform Energy Factor of at least 2.2 in the standard Department of Energy test procedure to be considered energy-efficient building property.
- Provides that a natural gas, propane, or oil water heater must have either a Uniform Energy Factor of at least 0.82 or a thermal efficiency of at least 90 percent to be considered energy-efficient building property
Qualified energy efficient improvements include:
- Insulation designed to reduce heat loss or gain
- Exterior Windows and Skylights
- Exterior Doors
- Metal Roofing (pigmented coating)
- Qualified energy property:
- Certain electric heat pump water heaters; electric heat pumps; central air conditioners; natural gas, propane, or oil water heaters; and stoves that use biomass fuel.
- Qualified natural gas, propane, or oil furnaces and qualified natural gas, propane, or oil hot water boilers.
- Certain advanced main air circulating fans used in natural gas, propane, or oil furnaces
The Nonbusiness Energy Property Credit is no longer available starting in tax year 2022.