What to Know About Home Energy Tax Credits in 2024
Planning home upgrades in the years ahead? Two home energy tax credits you may qualify for are the Residential Clean Energy Credit and the Energy Efficient Home Improvement Credit. Both were part of the Inflation Reduction Act passed in 2022 and went into effect starting January 1, 2023.
At first glance, the names of these home energy tax credits seem similar. So what’s the difference between the two? The Residential Clean Energy Credit provides a tax break for property that generates clean energy (think solar power) while the Energy Efficient Home Improvement Credit covers upgrades that help reduce home energy use (like insulation). In this article, we’ll be going into detail about each of these credits.