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| Issue Number: Tax Tip 2023-68Installing solar panels or making other home improvements may qualify taxpayers for home energy credits Homeowners who make improvements like replacing old doors and windows, installing solar panels or upgrading a hot water heater may qualify for home energy tax credits. They should know what these credits can do for them – and be careful of exaggerated claims companies trying to get their business may make. There are two tax credits to help defray costs for homeowners making energy efficient improvements to their primary or secondary residence. In some cases, renters may also be able to claim specific costs. Landlords can't use these credits for improvements made to any homes they rent out. Energy Efficient Home Improvement Credit
The amount of the credit taxpayers can take is a percentage of the total improvement expenses in the year of installation:
Residential Clean Energy Credit
The amount of the credit taxpayers can take is a percentage of the total improvement expenses in the year of installation:
To claim these credits, taxpayers should file Form 5695, Residential Energy Credits, with their tax return.
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