Tax Credit Information

Tax Credit Legislation

Information updated 12/30/2022

The Inflation Reduction Act of 2022

The Inflation Reduction Act of 2022 is a landmark bill that extended and modified many of the tax credits that were previously offered under the Energy Policy Act of 2005. The Inflation Reduction Act of 2022 features tax credits for consumers and businesses that save money on energy bills, create jobs, make homes and buildings more energy efficient, utilize clean energy sources and lower greenhouse gas emissions that contribute to climate change and global warming.  

The Energy Policy Act of 2005

The Energy Policy Act of 2005 first established the energy efficiency tax credits that were effective in 2006 & 2007. The majority of these tax credits were for 10% of the cost, up to $500. On October 3, 2008 former President Bush signed the Emergency Economic Stabilization Act of 2008 (also known as the "Bailout Bill") to put many of the tax credits back in place for 2009, and increased the credit to 30%, up to $1,500. On February 17, 2009 former President Obama signed into law the American Recovery and Reinvestment Act of 2009 (also known as the "Stimulus Bill") which among other changes extended the tax credits to 2010.

​

Historical Tax Credit Information

Information updated 12/30/2022

**UPDATED  Under the Consolidated Appropriations Act of 2021**

The Non-Business Energy Property Tax Credits (Equipment Tax Credits for Primary Residences) have been retroactively extended from 12/31/2017 through 12/31/2021.

The Renewable Energy Tax Credits for fuel cells, small wind turbines, and geothermal heat pumps now feature a gradual step down in the credit value, the same as those for solar energy systems. New in 2021, wood or pellet stoves or larger residential biomass heating systems are included in these tax credits.

Tax Credit: 

  • 30% for systems placed in service by 12/31/2019
  • 26% for systems placed in service after 12/31/2019 and before 01/01/2023
  • 22% for systems placed in service after 12/31/2022 and before 01/01/2024

Tax Credit for Biomass Heating Systems (2021):

  • 26% for systems placed in service between 01/01/2021 through 12/31/2022
  • 22% for systems placed in service between 01/01/2023 and 12/31/2023.

Tax Credits for Home Builders: The tax credits for builders of new energy-efficient homes has been retroactively extended to homes built after December 31, 2017 through December 31, 2021.