Home Energy Audits May Qualify for the Energy Efficient Home Improvement Credit

The Inflation Reduction Act of 2022 created several clean energy credits, including a non-refundable Energy Efficient Home Improvement Credit for the purchase and installation of certain energy efficient improvements in taxpayers' principal residences. The credit is equal to 30 percent of the total amount taxpayers pay during the year for:
 
•    Qualified energy efficiency improvements installed during the year;
•    Residential energy property expenditures; and
•    Home energy audits.

Notice 2023-59 provides specific requirements to claim the Home Energy Improvement Credit and the process for conducting the home energy audit. The audit must identify the most significant and cost-effective energy efficiency improvements to the residence, including an estimate of the energy and cost savings for each improvement.
 
The maximum credit for home energy audits is $150. The home energy auditor must also provide a written audit report to the taxpayer. Get additional information here.