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IRS Issues Guidance on Tax Credits Available for Home Energy Audits

Date: 08/04/2023
Type: Implementation of IRA

On August 4, 2023, IRS issued guidance for homeowners conducting home energy efficiency audits to receive tax credits under the Energy Efficient Home Improvement Credit created by IRA section 13301. The IRC 25C Energy Efficient Home Improvement Credit allows for a tax credit of 30% of annual qualified energy efficiency improvements, residential energy property expenditures, and home energy audits. The guidance specifies that energy efficiency audits identifying the most significant and cost-effective efficiency upgrades for residences qualify for the credit. Taxpayers may claim 30% of audits of up to $500 with a credit cap of $150.

Opportunities for Participation and Additional Resources:

  • Notice: https://www.irs.gov/pub/irs-drop/n-23-59.pdf
  • Press release: https://www.irs.gov/newsroom/home-energy-audits-may-qualify-for-an-energy-efficient-home-improvement-credit
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