If, during the tax year, you made energy saving improvements to your home in the US, both the principal residences and second homes qualify. The homes must be owned and used by you during the tax year you wish to claim the credit for.
Energy improvements to rental property do not qualify the owner for the credit. The improvements to rental property can be depreciated.
The home improvements for the 2021 Residential Energy credit should fall into one of these categories:
- Solar panels
- Solar powered hot water heaters
- Wind turbines
- Geothermal heat-pumps
- Fuel cells
- Insulation Material or System
- Exterior Doors exceeding 6.0 Energy Star
- Metal or Pigmented Coated Roofs
- Exterior Windows or Skylights
- Electric Heat pump
- High Efficiency Central Air
- Natural Gas, propane, or oil water heater
- Biomass fuel stove
For more information regarding the Residential Energy Credit, please see the instructions for Form 5695