What Is the Energy Efficient Home Improvement Credit?

The Energy Efficient Home Improvement Credit lets homeowners claim 30% of the cost of qualifying home upgrades like insulation, energy-efficient windows, doors, heat pumps, and water heaters — up to $3,200 per year. Different improvements have different sub-limits, so check the IRS rules for your specific project. It applies to your primary residence (not rentals). This is a non-refundable credit, so it can reduce your tax to zero but not below. Keep receipts and manufacturer certifications for every qualifying purchase.