Tax Deductions and Adjustments to income

The residential clean energy property credit is a 30-percent credit for certain qualified expenditures made by a taxpayer for residential energy efficient property. The Inflation Reduction Act (IRA) extended the residential clean energy property credit through 2034, modified the applicable credit percentage rates, and added battery storage technology as an eligible expenditure. The credit applies for property placed in service after December 31, 2021, and before January 1, 2033.

• Available for both existing homes and homes being built.
• You may be able to take a credit of 30% of your costs of qualified solar electric property, solar water heating property, small wind energy property, geothermal heat pump property, biomass fuel property, and fuel cell property placed in service in 2022 through 2033
• The credit amount for costs paid for qualified fuel cell property is limited to $500 for each one-half kilowatt of capacity of the property

 2022

Through December 31, 2022, the energy efficient home improvement credit is a $500 lifetime credit. 

• Extended to property placed in service through December 31, 2022
• Only available for existing homes (not available for new construction). 
• Qualified energy efficiency improvements must meet certain energy efficiency requirements
• You may be able to take a credit equal to the sum of:
  • 10% of the amount paid or incurred for qualified energy efficiency improvements installed during 2022, and
  • Any residential energy property costs paid or incurred in 2022.

This energy efficient home improvement credit is limited as follows.

• A total combined credit limit of $500 for all tax years after 2005.
• A combined credit limit of $200 for windows for all tax years after 2005.
• A credit limit for residential energy property costs for 2022 of $50 for any advanced main air circulating fan; $150 for any qualified natural gas, propane, or oil furnace or hot water boiler;
  and $300 for any item of energy efficient building property.

2023

Beginning January 1, 2023, the amount of the credit is equal to 30% of the sum of amounts paid
by the taxpayer for certain qualified expenditures, including (1) qualified energy efficiency improvements installed during the year, (2) residential energy property expenditures during the year, and (3) home energy audits during the year. 

To qualify, a vehicle must:

• Have a battery capacity of at least 7 kilowatt hours
• Have a gross vehicle weight rating of less than 14,000 pounds
• Be made by a qualified manufacturer. 
• Undergo final assembly in North America

The sale qualifies only if:

• You buy the vehicle new
• The seller reports required information to you at the time of sale and to the IRS.
  • Sellers are required to report your name and taxpayer identification number to the IRS for you to be eligible to claim the credit.

In addition, the vehicle's manufacturer suggested retail price (MSRP) can't exceed:

• $80,000 for vans, sport utility vehicles and pickup trucks
• $55,000 for other vehicles

MSRP is the retail price of the automobile suggested by the manufacturer, including options, accessories and trim but excluding destination fees. It isn't necessarily the price you pay.