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Michael Solomon

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IRS Energy Credit

Article by Michael Solomon

Photography by Waterbear Photography - Kimber Greenwood

Originally published in Gainesville City Lifestyle

Per the IRS an energy credit is a nonrefundable “credit” that can be applied for with the filing of your individual/business tax filing.

As of the close of the 2022 tax year, there is a 30-percent credit for certain qualified expenditures made by a taxpayer for energy-efficient property.

The two main categories we see normally see are: 

Residential energy property – This is limited to the lower of 30% of the item or $600 per item

1. central air conditioners;

2. natural gas, propane, or oil water heaters;

3. natural gas, propane, or oil furnaces and hot water boilers;

4. improvements to or replacements of panelboards, sub-panelboards, branch circuits, or feeders that are installed along with building envelope components

Residential Clean Energy Property - 30% of cost (no limit)

1. solar electric property expenditures (solar panels);

2. solar water heating property expenditures (solar water heaters);

3. fuel cell property expenditures. 

4. small wind energy property expenditures (wind turbines);

5. geothermal heat pump property expenditures; and

6. battery storage technology expenditures.

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