Tax Tips: Don’t Forget to Claim your Energy Efficiency Tax Credits
Tuesday, January 28th, 2025

Energy efficient home improvement credit.
Don’t overlook any home energy efficiency you made in the year.
The nonbusiness energy property credit is now the “energy efficient home improvement credit” is divided into two sections:
1. qualified energy efficiency improvements, and
2. residential energy property expenditures.
On Tax Form 5695, a 30% credit, up to a maximum of $1,200, may be allowed for new (not used) “qualified energy efficiency expenditures” on your “main” home (house, houseboat, mobile home, cooperative apartment, condominium) located in the USA for the following:
• Insulation material or air sealing material or systems;
• Exterior doors;
• Windows and skylights;
• Central air conditioners;
• Natural gas, propane or oil water heaters;
• Natural gas, propane or oil furnaces or hot water boilers;
• Improvements or replacement of panelboards, subpanelboards, branch circuits or feeders; and
• Home energy audits.
Heat pumps and heat pump water heaters, biomass stoves and biomass boilers have a separate annual credit limit of $2,000.
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, battery storage technology, and fuel cell property.
Refer to instructions on Form 5695 for further details.
If you would like to learn more or to set up a consultation, call Marlies Y Hendricks CPA PLLC at either 716-694-3500 or 910-769-8730.
The above information is of a general nature only and should not be relied upon for specific situations.