What is the Residential Energy Credit?

Residential Energy Credit

The Residential Energy Credit is a nonrefundable tax credit to improve the energy efficiency of existing homes. The law provides a limited 30 percent credit of the cost for purchasing qualified energy efficiency improvements.

If the property was placed in service after December 31, 2019, and before January 1, 2021, the credit is then 26 percent. Once the property is placed after December 31, 2020, and before January 1, 2022, the credit is then 22 percent.

In order to qualify, a component must meet or exceed the criteria established by the 2000 International Energy Conservation Code (including supplements) and must be installed in the taxpayer’s main home in the United States.

Qualifying Energy-Efficient Products:
  • Exterior skylights, windows, doors
  • Heating and air conditioning
  • Insulation
  • Solar Water heaters
  • Geothermal heat pumps
  • Small wind turbines
  • Biomass Stoves
  • Solar roofing tiles and solar roofing shingles
  • Installation costs
  • Solar electric equipment


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