Your 2023 Residential Energy Credit Guide

The Green Light to Invest in Sustainable Home Improvements

Congress’s Inflation Reduction Act (IRA) is happening now, and homeowners should take advantage of the Residential Energy Credit. The goal of the program is to help reduce energy bills, improve comfort, and protect the environment.

The Residential Clean Energy Credit is a tax credit offered by the US Internal Revenue Service (IRS) to individuals who make certain types of energy-efficient improvements to their homes. This includes things like attic insulation and air sealing. The credit allows homeowners to claim a credit on their taxes for a portion of the cost of these improvements. The amount of the credit varies depending on the type of improvement made, but it can be as much as 30% of the cost of the improvement. The credit is subject to certain limits and restrictions, and it may not be available to all homeowners.

Our free interactive heat map evaluation will determine the energy efficiency of your home. Our professional team is just a call away.

The U.S. Department of Energy recommends adding insulation to your home to increase energy efficiency and reduce heating and cooling costs. They suggest that homeowners should insulate attics and ducts to improve the overall energy efficiency of the home. Additionally, they recommend that homeowners should consult with a professional to determine the appropriate type and amount of insulation for their specific home and climate.

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The Residential Clean Energy Credit FAQ

  • Also known as the Residential Renewable Energy Tax Credit

  • A federal tax credit is available to homeowners who make certain energy-efficient home improvements

These improvements can include:

  • Typical Bulk Insulation Products

  • Products that Air Seal (reduce air leaks)

Useful Resources:

ENERGY STAR – Seal and Insulate Program
ENERGY STAR – Insulation Tax Credit Hub

Air Sealing + Insulation Savings

The Residential Clean Energy Credit is worth a certain percentage of the cost of the equipment and installation, up to a maximum dollar amount. The percentage and maximum dollar amount can vary depending on the type of equipment installed, and the year in which it was installed. The credit can be applied to the homeowner’s federal income tax, which means that it can reduce the amount of tax that the homeowner owes.

30%

of the project cost

Your Principal Residence

The home must be in the United States. It can include a house, houseboat, mobile home, cooperative apartment, condominium, and manufactured homes.

$1,200

maximum credited amount

The Residential Clean Energy Credit Expires in 2032!

The overall total limit for an efficiency tax credit in one year is $3,200. This tax credit is effective for products purchased and installed between January 1, 2023, and December 31, 2032.

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2023-10-27T19:13:22+00:00