IR-2024-113: IRS updates frequently asked questions for the energy efficient home improvement and residential clean energy property credits

IRS Newswire April 17, 2024
News Essentials What's Hot News Releases IRS - The Basics IRS Guidance Media Contacts Facts & Figures Around The Nation e-News Subscriptions The Newsroom Topics Multimedia Center Noticias en Español Radio PSAs Tax Scams The Tax Gap Fact Sheets IRS Tax Tips Armed Forces Latest News Home IRS Resources Contact My Local Office Filing Options Forms & Instructions Frequently Asked Questions News Taxpayer Advocate Where to File IRS Social Media	Issue Number:    IR-2024-113 Inside This Issue IRS updates frequently asked questions for the energy efficient home improvement and residential clean energy property credits   WASHINGTON — The Internal Revenue Service today updated frequently asked questions in Fact Sheet 2024-15 to addresses the federal income tax treatment of amounts paid for the purchase of energy efficient property and improvements.    These FAQs supersede earlier FAQs that were posted in Fact Sheet 2022-40, on Dec. 22, 2022.    The FAQs revisions are as follows:  General questions— Question 4  On April 5, 2024, the Internal Revenue Service issued Announcement 2024-19 that addressed the federal income tax treatment of amounts paid for the purchase of energy efficient property and improvements.    Generally, taxpayers who receive rebates for the purchase of energy efficient homes will not include the value of those rebates as income on their tax returns, however they will need to reduce the basis of the property when they sell it by the amount of the rebate.   The Inflation Reduction Act (IRA) statutory language describes performance-based incentives and electrification product subsidies as "rebates."    Announcement 2024-19 provides that amounts received from the Department of Energy (DOE) home energy rebate programs funded through the IRA will be treated as a reduction in the purchase price or cost of property for eligible upgrades and projects.  Accordingly, the consumer that receives an IRA rebate will not be required to report the value of the rebate as income.   More information about reliance is available. Back to Top         Thank you for subscribing to the IRS Newswire, an IRS e-mail service. If you know someone who might want to subscribe to this mailing list, please forward this message to them so they can subscribe. This message was distributed automatically from the mailing list IRS Newswire. Please Do Not Reply To This Message.

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