Energy efficient upgrades 2022/2023?

[faeness]

I have a $12K project slated in December 2022 to replace the windows and back door with energy efficient ones. I will pay immediately on installation, expected within one day. I have 3 questions:

1) I can't figure out if the tax credit will be better in 2022 vs. 2023 in my situation. Under which rules would the tax credit be greater? 

2) Can I receive an even greater tax credit across both 2022/2023 if I split the project and the payments across December 2022 and Jan 2023?

3) The house is my primary residence and I'm the only one paying for the project, but it's owned by someone else and they have a different primary residence. Can I still claim the tax credit? 

[OpeA1]

Here is the specific information you requested below all taken from this link Are Energy-Efficient Appliances Tax Deductible? 

Does the IRS offer tax breaks for energy-efficient appliances?

The IRS offers several ways for taxpayers to cut their tax bills through investing in certain energy-efficient appliances and home improvements. This can include upgrades like energy-efficient water heaters, furnaces, air conditioners, windows, doors and similar investments, but also clean vehicles and related equipment.

The IRS makes the energy-efficient equipment tax credits available to most all taxpayers and targets certain ones to low- and moderate-income families, making the transition to going green easier and more affordable.

1. Energy Efficient Home Improvement Credit

Recently renamed from the Nonbusiness Energy Property Credit, this tax credit originally expired at the end of 2021. The Inflation Reduction Act changed the fate of this credit by not only reinstating it, but substantially expanding the impact starting in 2023 through 2032.

The old rules apply for 2022, essentially extending the previous credit by one year. Afterwards, the credit for the costs of installing certain energy-efficient upgrades such as home insulation, windows, doors, roofing, and more increases from 10% to 30%. It will also be expanded to cover certain types of stoves, boilers, electric panels, and other related equipment with a greater set of limits (up to $1,200 per year vs. the previous $500 lifetime limit). If you can manage to spread your qualifying home improvement projects throughout the credit’s current, upgraded availability (through December 31, 2032), you could net up to $12,000 in tax credit value over ten years through the Energy Efficient Home Improvement Credit.

The annual limits on the credit for specific types of qualifying home improvements will be enhanced starting in 2023 as well. Specifically, credit limits will be the following:

• Home energy audits: $150
• Exterior doors: $250 per door (up to $500 per year)
• Exterior windows and skylights, central A/C units, electric panels and related equipment, natural gas, propane and oil water heaters, furnaces or hot water boilers: $600

The credit is a percentage of the cost of the improvement and is non-refundable, but can be carried forward to other years.  Do check with the homeowner to verify your qualification for this credit.