Federal Tax Credits for Energy Efficiency

Federal Tax Credits for Energy Efficiency

HVAC Duct Sealent service to qualify for home improvement credits. Credits are available for 30% of costs—up to $2,000—and can be combined with credits up to $1,200 for other qualified upgrades made in one tax year.UHS is an aerospace distributor, a “Qualified energy improvement Credit,” which allows homeowners to purchase Duct sealing services and receive their Federal Tax Credit.

What Incentives Are Available?

Tax Credits: Save up to $3,200 a year on your federal income taxes for making energy efficiency improvements to your home. Tax credits are available now to all Americans nationwide.

Rebates/Discounts: These are available now from utilities in many parts of the country and will soon be available from most states as part of the Inflation Reduction Act starting in 2024. Eligibility may be limited based on income.

Am I Eligible for Income-Based Assistance?

Unprecedented funding from federal, state, and utility programs now provides more opportunities for low- and moderate-income families to make energy-saving home upgrades. Eligibility varies by program, but income, household size, and location are key factors. Percent of Area Median Income (AMI) is the metric used for Inflation Reduction Act programs. You may also qualify based on participation in other federal programs for low-income households (e.g., SNAP, Medicaid, Head Start).

What Products Are Eligible for Incentives?

Incentives are available for many energy-efficient home products, including heating and cooling equipment, heat pump water heaters, insulation, windows, and more.

Home Improvement Savings

Start your clean energy future today.
Energy-saving home upgrades are now more affordable than ever. With new federal, state, and local incentives, you can save thousands of dollars and enjoy a more comfortable, energy-efficient home today.

Use this tool to:

  • Identify and learn about eligible products.
  • Develop a plan to maximize your savings.
  • Find available financial incentives (tax credits, rebates, and discounts).
  • Find resources for income-based assistance for upgrades.
  • Get connected to installation professionals and retailers in your area.

 

Homeowners Can Save Up to $3,200 Annually on Taxes for Energy Efficient Upgrades.

Through 2032, federal income tax credits are available to homeowners. These credits will allow up to $3,200 annually to lower the cost of energy-efficient home upgrades by up to 30 percent.

In addition to the energy efficiency credits, homeowners can also take advantage of the modified and extended Residential Clean Energy credit, which provides a 30 percent income tax credit for clean energy equipment, such as rooftop solar, wind energy, geothermal heat pumps, and battery storage through 2032, stepping down to 22 percent for 2033 and 2034.

ENERGY STAR provides the following information to help you learn:

Federal Tax Credits for Energy Efficiency

Efficient Home Upgrades Tax Credits & Rebates

Explore incentives, eligible products, and installers in your zip code.

How the Tax Credits Work for Homeowners

Save Up to $2,000 on Costs of Upgrading to Heat Pump Technology

These energy-efficient home improvement credits are available for 30% of costs—up to $2,000—and can be combined with credits up to $1,200 for other qualified upgrades made in one tax year.

Homeowners Can Save Up to $3,200 Annually on Taxes for Energy Efficient Upgrades.

Through 2032, federal income tax credits are available to homeowners. These credits will allow up to $3,200 annually to lower the cost of energy-efficient home upgrades by up to 30 percent.

In addition to the energy efficiency credits, homeowners can also take advantage of the modified and extended Residential Clean Energy credit, which provides a 30 percent income tax credit for clean energy equipment, such as rooftop solar, wind energy, geothermal heat pumps, and battery storage through 2032, stepping down to 22 percent for 2033 and 2034.

ENERGY STAR provides the following information to help you learn:

Jar of coins with plant growing out of the top

Efficient Home Upgrades Tax Credits & Rebates

Explore incentives, eligible products, and installers in your zip code.

How the Tax Credits Work for Homeowners

Save Up to $2,000 on Costs of Upgrading to Heat Pump Technology

These energy-efficient home improvement credits are available for 30% of costs—up to $2,000—and can be combined with credits up to $1,200 for other qualified upgrades made in one tax year.