Energy Tax Credit FAQ

Energy Attic is not in any way a tax professional or associated with any tax services. You should always contact a certified tax professional before making any decisions with your taxes.

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Energy Tax Credit 2022-2023

Frequently Asked Questions

What are the 2022 tax credit details?

The tax credit amount is 10% of the cost up to $500, not including installation.

What are the 2023 tax credit details?

30% of the cost up to $1,200 ($2,000 for Heat Pump) products must be in the highest efficiency CEE tier. This DOES include installation.

What products does the 2022 tax credit cover?

  • Air Conditioners - Up to $300 tax credit
  • Heat Pumps - Up to $300 tax credit
  • Gas Furnaces and Boilers - Up to $150 tax credit
  • Advanced Main Air Circulating Fan - Must use no more than 2% of furnace’s total energy, up to $50 tax credit
  • What products does the 2023 tax credit cover?

  • Air Conditioners - Up to $600 tax credit
  • Heat Pumps - Up to $2,000 tax credit
  • Gas Furnaces and Boilers - Up to $600 tax credit
  • Advanced Main Air Circulating Fan - Must use no more than 2% of furnace’s total energy, up to $50 tax credit
  • When does this new legislation take effect?

    The Inflation Reduction Act of 2022 was passed by both the Senate and the House of Representatives and signed into law by President Biden in August of 2022. The current 25C, 25D and 45L tax credits apply retroactively to products installed beginning on January 1, 2022. As noted in the next column, these tax credits will change again as of January 1, 2023.

    How does this legislation affect homeowners?

    For homeowners, this legislation makes stepping up to a higher efficiency home comfort system more affordable. And when they do, it can lead to higher satisfaction with systems that provide the additional comfort benefits of our premium products

    What do I need to do when it's filing time?

    Complete IRS Form 5695 when filing your 2022 federal tax return. Use Form 5695 to calculate your residential energy credit.

    Where can I find more information?

  • Learn more from IRS
  • Learn more from Energy Star
  • Learn more from The White House
  • Learn more from Kiplinger
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