A new credit is available for energy-efficient home improvements that began after Jan. 1, 2023. The credit is equal to 30% of qualified expenses, including:
- Energy-efficient home improvements
- Residential energy property expenses
- Home energy audits
The maximum credit that can be claimed each year is:
- $1,200 for energy property costs, including certain energy-efficient home improvements
- $250 per door, up to $500
- $600 for windows
- $150 for home energy audits
- $2,000 per year for heat pumps, biomass stoves or biomass boilers
There’s no lifetime dollar limit for the credit, so a taxpayer can claim the maximum amount each year until the credit expires in 2033
