There are lots of energy credits available in 2024 from your home to your electric car. The big increases are all for tax years starting in 2023. With a new administration in place, things may change drastically in 2025 so keep an eye on this space for updates, but for now there are many options available.
Taxpayers now have two Residential Energy Credits available: Energy Efficient Home Improvements (up to $3,200) and Residential Clean Energy Property Credits. The Clean Vehicle Credit (up to $7,500, based on certain requirements) is also available to taxpayers for both new and used electric vehicles. There are many rules and limitations surrounding these credits, so be prepared to provide receipts and other documents so we can be sure you are receiving the proper credits.
The Energy credits are for your Main Home (not rental properties) and you must live in the home. Items must meet particular IRS requirements to qualify (see irs.gov for more details). Roofs and garage doors no longer apply.
Items that qualify as Energy Efficient Home Improvements include: Exterior doors, windows or skylights, Insulation, Central a/c, Water Heaters, Furnaces, Boilers, Heat Pumps, and Biomass Stoves or boilers. A professional Home Energy Audit also falls into this category. To claim this credit, you must be the Owner of the home.
Items that qualify as Residential Clean Energy Improvements include: Solar Electric Panels, Solar Water Heaters, Fuel Cells, Battery Storage Technology, Geothermal Heat Pumps and Wind Turbines. To claim this credit, you must either be an owner of the home or pay rent. Again, this is for your main home (not a rental property).
The tax credit for Electric and Fuel Cell Vehicles have changed quite a bit starting in 2023. All sellers are required to report taxpayer name and SSN to the IRS in order to claim the credit. New and Used EV or FCV vehicles must be purchased through a dealership and meet particular requirements. The maximum sticker price (MSRP) for new van/SUV/pickups is $80,000; maximum MSRP all other new vehicles is $55,000. For used cars, Maximum sales price cannot exceed $25,000, must be year 2022 or earlier (this is for the 2024 tax year). Taxpayers claiming the credit for used cars may not be claimed as a dependent. For all cars purchased, taxpayers claiming the credit are subject to certain income limits. Make sure that you have receipts and other documentation available when completing your tax return to help determine eligibility for the credit.
You may be eligible for a credit if you Add an EV Charger to your home. However, this credit is only available to you based on where you live (Location, location, location!).