Tax Resources
 

Residential Energy Tax Credit

What is the IRS residential energy tax credit?

The residential energy tax credit is the tax credit allowed for certain new energy efficient property installed in or on the taxpayer's main home. The residential energy tax credit is a nonrefundable tax credit. The residential energy tax credit can be claimed on the IRS tax form 5695 called Residential Energy Credits.

What is the maximum residential energy tax credit?

The maximum residential energy tax credit is $500. The $500 residential tax credit is made up of:

  • 10% of qualified energy efficient improvements such as:

    • insulation

    • exterior windows and skylights (up to $2,000)

    • exterior doors

    • coated metal roofs that reduce heat gain

PLUS

  • 100% of the cost of eligible:

    • heat pumps

    • central air conditioners

    • water heaters (up to $300)

    • natural gas

    • propane

    • oil furnaces

    • hot water boilers (up to $150)

    • advanced main air circulating fans (up to $50)
Is there energy tax credit for qualified solar water heating equipment?

There is a energy tax credit of 30% of qualified solar water heating equipment. The maximum credit is $2,000.

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