Green Tax Credits

If you have made the switch to green living, you are in luck because you may be entitled to green tax credits. These credits are nonrefundable which means you will not receive the credit above the taxes you owe.  

Per the IRS, below are the specifications of the credits:

Energy Efficient Home Improvement Tax Credit

If you made qualified improvements to your home you can claim this credit. You cannot carry over this credit.

Eligibility:

• The home is in the United States
• The home is an existing home that you improve or add on to
• New homes are not eligible

Credit Amount: 

• The credit 30% of qualified expenses up to $3,200
  • Qualified expenses include:
    • Qualified energy efficiency improvements installed during the year
    • Residential energy property expenses
    • Home energy audits

Limits to annual Credit

• $1,200 for energy property costs and certain energy efficient home improvements, with limits on exterior doors ($250 per door and $500 total) 
• $2,00 per year for qualified heat pumps, biomass stoves or biomass boilers
• $600 for exterior windows and skylights qualify
• $1,200 max credit limit for insulation and air sealing materials or systems that meet the International Energy Conservation Code (IECC) standards 2 years prior to installation. 
• $150 for home energy audit
• There’s no lifetime dollar limit to how long you can claim this credit. You can claim it every year you made eligible improvements through 2033
• Labor costs do not qualify for installing bullying envelope components

Residential Clean Energy Credit 

You can receive this credit if you installed renewable energy in your home and you can carry over any portion not taken this year.

Eligibility:

• The home is in the United States
• It’s an existing home or a home being constructed
• For certain improvements, the home is your second home that you use part-time, but it’s not a rental property

Credit Amount: 

• The credit 30% of the cost of new, qualified clean energy property from 2022 through 2032.
  • Qualified expenses include:
    • Solar electric panels
    • Solar water heaters
    • Wind Turbines
    • Geothermal heat pumps
    • Fuel cells
    • Battery storage technology
    • Used clean energy property is not eligible

Limits to annual Credit

• $500 for fuel cell property for each kilowatt of capacity. If more people occupy the home, $1,667 for each half kilowatt of fuel capacity

Electric Vehicle Tax Credit

You can receive this credit if you bought a new or used car qualified electric vehicle. You cannot carry over the credit to future years.

New Vehicle Purchased 2023

Eligibility:

• You purchased a new qualified electric vehicle or fuel cell vehicle
• You purchased the vehicle for personal use and not for sale
• Use the vehicle primarily in the US

Credit Amount: 

• The credit amount is $7,500

Income Limitations

Your modified adjusted gross income cannot exceed the following:

• Married filing jointly $300,00
• Head of Household – $225,000
• All other filers – $150,000

Used Vehicle Purchased 2023

Eligibility:

• You purchased a qualified used electric vehicle or fuel cell vehicle from a licensed dealer for $25,000 or less
• You must be the person who purchased the vehicle and it’s not for sale
• You must be the original owner
• You cannot be claimed on someone’s else return
• You have not claimed the credit in the 3 years before the purchase date

Credit Amount: 

• The credit 30% of the sale price up to a maximum credit of $4,000

Income Limitations

Your modified adjusted gross income cannot exceed the following:

• Married filing jointly or a surviving spouse $150,000
• Head of Household – $112,500
• All other filers – $75,000

Need Help Filing Your Return

If you need help with your return, you can go here.

Call: 800-829-1040

7 am to 7 pm local time

Callers who are hearing impaired

TTY/TDD 800-829-4059

Check Your Refund

To check the status of your refund, you can go here.

Mindful Reminder

If you have decided to do your tax return, learning tax laws can be challenging and it takes time. Be patient and give yourself plenty of time to review. Refer to the previous year’s return as a guide. Use a method to center yourself if you become agitated. Then, come back when you are calm again. Being relaxed will help you absorb information a lot easier.

Related Posts

Preparing for Tax Season	Education Credits	It’s IRA Season
Expenses for Business Use of your Home	Family Tax Credits	Saver’s Credit