Slash Your Energy Bills and Save the Planet: US Government Offers Tax Credits for Clean Energy Home Upgrades!

The US Department of Energy is offering tax credits to Americans who have made clean energy improvements to their homes this tax season. The credits are aimed at incentivizing homeowners to invest in clean energy equipment, such as battery storage, solar panels, home electric vehicle chargers, and participating in home energy audits. According to a report by The US Sun on February 17, 2023, while geothermal heat pumps and solar water heating will not be included this season, the majority of credits available for certain equipment have gone up by 20% or more compared to last year.

Based on a report by Turbo Tax on February 9, 2023, nine different tax credits for clean energy equipment are available, including battery storage and solar panels for 30% of the cost, efficient heating and water heating equipment for 30% of the cost up to $600, and electric panel or circuit upgrades for new electric equipment for 30% of the cost up to $600. Home energy audits, insulation material, skylight windows, exterior doors, and home electric vehicle chargers are also included in the tax credits available.

Eligible for the tax credits are homeowners or renters for certain expenditures, anyone who purchased energy-efficient appliances and products, and taxpayers who made energy-efficient home improvements and home energy audits. To get the credit, fill out IRS Form 5695 and include it when filing your tax return. There are eight steps to fill out the form, which include calculating the total cost of your solar power system, adding additional energy improvements, calculating the tax credit value, entering your tax credit value, calculating your tax liability, calculating the maximum tax credit you can claim, entering your maximum tax credit, and calculating any carry-over credit.