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.