The IRS has issued proposed regulations for the Energy Efficient Home Improvement Credit, which became effective in 2023. Homeowners who place qualified property into service can claim a federal tax credit equal to 30% of the amount they paid for qualified products or for a home energy audit. However, the maximum credit amount is $3,200. This includes a “general” total limit of $1,200, and $2,000 for qualified heat pumps, heat pump water heaters and biomass stoves and boilers. Other limits include $250 per exterior door and $600 for all windows. In 2025, the property must be made by qualified manufacturers and taxpayers must start reporting product identification numbers to the IRS.
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