What they are and how to qualify
According to the U.S. Department of Energy, homeowners who purchase energy and other efficient appliances and products are eligible for the clean energy tax credit. To get the credit, consumers must fill out IRS Form 5695, follow IRS instructions, include Form 5695 when filing their tax return, and include any relevant product receipts with the tax return. Consumers can claim the same or varying credits year after year with new products purchased, but some credits have an annual limit.
The following products are eligible for tax credits:
- Solar panels for electricity
- Home backup power battery storage with a capacity of 3 kWh or greater
- Electric or natural gas heat pumps; electric or natural gas heat pump water heaters; central air conditioners; natural gas or propane or oil water heaters; natural gas or propane or oil furnaces or hot water boilers that meet or exceed the specific efficiency tiers established by the Consortium for Energy Efficiency. You can find eligible products here.
- Solar water heating products are certified for performance by the Solar Rating Certification Corporation or a comparable entity endorsed by the state government in which the product is installed. Learn more here.
- Oil furnaces or hot water boilers if they meet or exceed 2021 Energy Star efficiency criteria and are rated by the manufacturer for use with fuel blends at least 20% of the volume of which consists of an eligible fuel. Find energy-efficient products here.
- Panelboards, sub-panelboards, branch circuits, or feeders that are installed according to the National Electrical Code and have a load capacity of 200 amps or more.
- Insulation materials and systems that meet International Energy Conservation Code standards. Learn more about the Building Energy Codes Program here.
- Exterior windows that meet Energy Star’s Most Efficient requirements. Find energy-efficient windows here.
Consumers can find qualified professionals to conduct home energy audits by visiting energy.gov.
