Q&A of the Week May 22, 2024

Question

What is the Residential Clean Energy Credit?

Answer

The Residential Clean Energy Credit is an annual credit of 30% of the costs of new, qualified clean energy property to a main home in the U.S. from 2022 through 2032. 

Qualified expenses include:

• Solar water heaters certified by the Solar Rating Certification Corporation

• Solar electric panels

• Wind turbines

• Geothermal heat pumps that meet Energy Star requirements

• Fuel cells

• Battery storage technology (beginning in 2023) with a capacity of at least 3 kilowatt hours

Remember to keep detailed records and receipts. For questions, please consult with a tax professional. Read more here: https://www.irs.gov/newsroom/irs-home-improvements-could-help-taxpayers-qualify-for-home-energy-credits.