American families and businesses can receive federal tax credits and rebates as they improve energy efficiency in their homes or businesses.You may be eligible for federal energy-efficiency incentives if you’ve upgraded appliances or made home weatherization improvements to your primary residence since 2023. When claiming federal tax credits and rebates, confer with a tax professional to ensure you maximize your potential benefits.
Federal Tax Credits
Federal tax credits of up to $3200 per can be claimed with your federal income taxes for the year when the upgrades are made. High-efficiency water heaters, heat pumps, exterior doors, and windows, heating and cooling systems, and insulation are some upgrades covered in the federal tax credit and rebate program. EVs and rooftop solar systems are also included.
Follow the IRS instructions, complete and include IRS Form 5695 when filing your tax return. You’ll need to know the total cost of the upgrades and include relevant receipts. Given how the annual limits are structured, consider improving your home energy efficiency over a few years. Planning your upgrades can help you maximize the annual credit amounts you can claim. As with any tax matter, talking with a tax professional is a good idea.
Federal Tax Rebates
States manage the Home Energy Rebates. Check here to see if your energy efficiency improvements qualify. You’ll need documentation and the total amount spent on the upgrades. As with any tax matter, consulting with a tax professional is advisable.
Check out the DOE’s Energy Savings Hub
