Energy Efficient Home Improvement Credit

Get money back on home upgrades that lower energy costs

The energy efficient home improvement tax credit is equal to 30% of expenses on qualifying home improvement projects, up to a maximum credit of $3,200 on home energy audits and energy efficiency improvements and residential energy property expenses that help you save on energy costs.

This is for informational and educational purposes only. See the full disclaimer here.

What projects qualify?

Doors, Windows, Skylights, Insulation, and Air Sealing

You can claim 30% of the costs of installing new doors, windows, skylights, insulation, or air sealing systems up to a max credit limit of $1,200. Doors have a specific limit of $250 per door and $500 total and must meet EnergyStar.gov requirements. Windows and Skylights are limited to $600 total and must meet EnergyStar.gov requirements. And insulation and air sealing materials or systems have no specific limit but must meet International Energy Conservation Code (IECC) standards in effect at the start of the year two years before installation.

Residential Energy Property

This refers to installing systems like central air conditioners, water heaters, or hot water boilers. These systems must meet the Consortium for Energy Efficiency (CEE) highest efficiency tier, not including any advanced tier, in effect at the beginning of the year when the property is installed. Electrical components needed to support these systems, such as panelboards and circuitry, can also qualify if they meet the National Electric Code and have a capacity of 200 amps or more. Costs to install these systems count as well. There is a credit limit of $600 per installed item.

Heat Pumps, Biomass Stoves, or Biomass Boilers

Electric or natural gas heat pumps, electric or natural gas heat pump water heaters, and biomass stoves and boilers with a thermal efficiency rating of at least 75% qualify for a credit equal to 30% of the costs, up to $2,000 per year. In the case of these items, installation costs can count towards your credit amount.

Home Energy Audit

You can also claim up to $150 for a home energy audit. A home energy audit helps you discover where your house might be leaking heat - and what you can do to save money on energy bills. In order to qualify for this credit, the home energy audit must be conducted by a certified home energy auditor and include a report that gives estimates of the energy and cost savings of any recommended improvements. The Energy Efficient Home Improvement Credit has no lifetime dollar limit so you can claim the maximum annual credit every year that you make eligible improvements through 2032. But the credit is nonrefundable, so you can't get back more on the credit than you owe in taxes, and it does not roll over, so you can't apply any excess credit to future tax years.

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