Energy Efficiency Home Improvement Credit

HVAC systems are a major financial investment, which can be a deterrent for many to upgrade their equipment. But, if you make qualified energy-efficient improvements to your home after Jan. 1, 2023, you may qualify for a tax credit up to $3,200. You can claim the credit for improvements made through 2032.

Beginning Jan. 1, 2023, the credit equals 30% of certain qualified expenses, including:

Qualified energy efficiency improvements installed during the year
Residential energy property expenses
Home energy audits

Qualified property includes new:

Central air conditioners
Natural gas, propane, or oil water heaters
Natural gas, propane, or oil furnaces and hot water boilers

How to Claim the Energy Efficient Home Improvement Credit

File Form 5695, Residential Energy Credits Part II, with your tax return to claim the credit. You must claim the credit for the tax year when the property is installed, not merely purchased.

For full details visit the IRS Energy Efficient Home Improvement Credit page.