2024 Energy Efficient Home Improvement Credit
The 2024 Energy Efficient Home Improvement Credit is $1,200.
Effective 2024-01-01Source: 2024 Instructions for Form 5695 (IRS)Verified 2026-09-01
Compared with 2023
Every figure on this page is unchanged from 2023.
| Item | 2023 | 2024 | Change |
|---|---|---|---|
| Annual credit limit | $1,200 | $1,200 | +$0 (+0.0%) |
Who it applies to
Taxpayers who made energy saving improvements to their main home in the United States during 2024.
What changed this year, and why
The Energy Efficient Home Improvement Credit for 2024 has an annual credit limit of $1,200 for qualified energy efficiency improvements, the same as in 2023. A separate annual limit applies to heat pumps, heat pump water heaters, biomass stoves, and biomass boilers.
Common questions
- Can I claim more than $1,200 if I made multiple types of improvements?
- Yes. The annual credit limit of $1,200 applies to most qualified energy efficiency improvements. A separate annual limit applies to heat pumps, heat pump water heaters, biomass stoves, and biomass boilers. You may claim both limits in the same year if you made qualifying improvements in each category.
Every amount on this page is a published figure rather than yours. The Energy efficient home improvement credit headroom takes the number you enter and works it out against them, showing which published figure it used.
The annual limit is a ceiling over smaller ceilings
The IRS instructions for 2024 describe the annual dollar ceilings that apply to the Energy Efficient Home Improvement Credit. A taxpayer's total credit for qualified energy property cannot exceed $1,200 for the year. Inside that overall cap, individual sub-limits apply to particular categories of spending. For example, any single item of qualified energy property is subject to a $600 ceiling. All exterior windows and skylights together share a combined ceiling of $600. Each qualifying exterior door has a $250 cap, with a $500 maximum across all doors in the same year. Home energy audits are subject to a separate $150 ceiling. These per-item ceilings operate within the broader $1,200 annual limit; a taxpayer cannot receive more than $1,200 in total even if multiple sub-limits would otherwise allow a larger combined amount. The structure ensures that spending on any one type of improvement is restrained, while the overall annual ceiling sets the maximum benefit a household can claim for the tax year.
However, this credit is limited as follows. • A total combined credit limit of $1,200 for qualified energy property. • A credit limit of $600 for any qualified energy property item. • A combined credit limit of $600 for all exterior windows and skylights. • A credit limit of $250 for any qualifying exterior door and $500 total for all qualifying exterior doors. • A combined credit limit of $2,000 for heat pump and heat pump water heaters; biomass stoves and boilers. • A credit limit of $150 for home energy audits.
2024 Instructions for Form 5695 (IRS)
Heat pumps get their own bucket
Heat pumps, heat pump water heaters, biomass stoves, and biomass boilers operate under their own separate annual credit limit of $2,000, which is not subject to the $1,200 overall cap that applies to other qualified energy property. This separate $2,000 limit replaces the prior lifetime limitation of $500 that applied to these items. The separate limit means taxpayers can claim up to $2,000 annually for these high-efficiency heating systems in addition to the $1,200 limit for other energy-efficient improvements like insulation, windows, doors, and energy audits. There is no lifetime cap on the $2,000 annual limit, so eligible homeowners can claim it each year they make qualifying purchases. This separate treatment recognizes that heat pumps and biomass systems represent significant investments in home energy efficiency and deserve their own credit category with higher annual limits.
Heat pumps and heat pump water heaters, biomass stoves and biomass boilers have a separate annual credit limit of $2,000 with no lifetime limitation, which replaces the prior lifetime limitation of $500.
2024 Instructions for Form 5695 (IRS)
The manufacturer number you must have
To claim the credit for qualified energy property, taxpayers must have written certification from the manufacturer that the product qualifies for the credit. The manufacturer's certification statement confirms that the product meets the energy efficiency standards required under the Internal Revenue Code for the specific credit category. This written certification does not need to be attached to the tax return, but taxpayers must keep it in their records as documentation. The certification requirement applies to all types of qualified energy property, including building envelope components, heating and cooling systems, water heaters, and other residential energy property. Without proper manufacturer certification, the property cannot qualify for the credit even if it appears to meet the technical specifications. Taxpayers should obtain the manufacturer's certification before purchasing qualified property and retain it with their tax records for as long as the property is in service and the credit is claimed.
For purposes of taking the credit, you can rely on the manufacturer’s certification, in writing, that a product is qualifying property for the credit. Don't attach the certification to your return. Keep it for your records.
2024 Instructions for Form 5695 (IRS)
What makes an audit claimable
For a home energy audit to qualify for the Energy Efficient Home Improvement Credit, the audit must meet specific auditor requirements. Beginning January 1, 2024, the audit must be performed by a Qualified Home Energy Auditor or under the supervision of a Qualified Home Energy Auditor. The auditor must be certified by a Qualified Certification Program at the time the audit is performed. The written report must include the auditor's name and employer identification number or other taxpayer identifying number, an attestation that the auditor is certified by a Qualified Certification Program, and the name of that certification program. If you cannot confirm the auditor meets these requirements, you cannot claim the credit. The annual credit limit is $1,200, and the audit must be for your main home in the United States.
Home energy audits. Beginning January 1, 2024, home energy audits must be performed by a Qualified Home Energy Auditor or under the supervision of a Qualified Home Energy Auditor. The Qualified Home Energy Auditor must be certified by a Qualified Certification Program at the time of the home energy audit.
2024 Instructions for Form 5695 (IRS)
Subsidised money does not count
Amounts provided through subsidized energy financing cannot be used to calculate the energy efficient home improvement credit. Subsidized energy financing refers to funding provided under federal, state, or local programs where the principal purpose is to provide below-market financing for energy conservation or energy production projects. If a taxpayer receives subsidized financing to pay for qualified energy property or a home energy audit, those amounts are excluded from the credit calculation. Only the taxpayer's own out-of-pocket expenses that are not covered by subsidized financing can be included when figuring the credit. This rule prevents taxpayers from receiving a double benefit by getting both favorable financing terms and a tax credit for the same expenditure. Taxpayers must separate their own funds from subsidized financing amounts when determining their eligible expenses for the credit.
Any amounts provided for by subsidized energy financing can't be used to figure the energy efficient home improvement credit. This is financing provided under a federal, state, or local program, the principal purpose of which is to provide subsidized financing for projects designed to conserve or produce energy.
2024 Instructions for Form 5695 (IRS)
How each figure was verified
Each number below was read from a stored copy of the document named beside it, and checked to occur word for word in the quoted sentence. The digest is of that stored text.
2024 Instructions for Form 5695 (IRS)
- Annual credit limit
A 30% credit, up to a maximum of $1,200, may be allowed for: