You may qualify to take the credit if you made qualified energy saving improvements to the home during the tax year. The home must be owned and used by you during the tax year you wish to claim the credit for. The home must be located in the US. You must reduce the basis of your home by the amount of
any credit allowed. The credit consists of two parts.
Residential Clean Energy Credit (Part I)
You may be able to take a credit of 30% of your costs of qualified solar electric property, solar water heating property, small wind energy property, geothermal heat pump property, biomass fuel property, and fuel cell property.
- Include labor costs allocable to the onsite preparation, assembly, or original installation of the residential energy efficient property and for piping or wiring to connect such property to the home.
- The credit amount is limited to $500 for each one-half kilowatt of capacity of the property.
Energy Efficient Home Improvement Credit (Part II)
You may be able to take a credit equal to the sum of:
- 10% of the amount paid or incurred for qualified energy efficiency improvements installed during 2022, and
- Any residential energy property costs paid or incurred in
2022.
This credit is limited as follows.
- Total combined credit limit of $500 for all tax years after 2005.
- Combined credit limit of $200 for windows for all tax years after 2005.
- Credit limit for residential energy property costs for 2022 of$50 for any advanced main air circulating fan; $150 for any qualified natural gas, propane, or oil furnace or hot water boiler;
and $300 for any item of energy efficient building property.