The IRS released a new FAQ webpage about recent changes to tax incentives for energy-efficient home improvements and residential clean energy property.
The Inflation Reduction Act (IRA) of 2022, which Congress passed in August, amended the tax credits for energy-efficient home improvements and residential energy property.
The FAQ spells out more details on the law’s changes to these tax credits and information on eligible expenditures. It also includes several examples of how the tax credit limitations work.
Under the IRA, the energy-efficient home improvement credit increased for years after 2022, with an annual credit generally up to $1,200. See the FAQ.