Energy credits are not itemized deductions. So, if you spent anything on energy upgrades (see qualifying products below), you may qualify for a tax credit in addition to your standard deduction. And the energy credits are credits, not deductions, so they reduce your tax bill dollar for dollar and could even eliminate it.
These expenses may qualify if they meet requirements detailed on energy.gov:
- Exterior doors, windows, skylights and insulation materials
- Central air conditioners, water heaters, furnaces, boilers and heat pumps
- Biomass stoves and boilers
- Home energy audits
The amount of the credit you can take is a percentage of the total improvement expenses in the year of installation:
- 2022: 30%, up to a lifetime maximum of $500
- 2023 through 2032: 30%, up to a maximum of $1,200 (heat pumps, biomass stoves and boilers have a separate annual credit limit of $2,000), no lifetime limit
Get details on the Energy Efficient Home Improvement Credit.
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