The IRA has expanded and expanded tax credits that help households invest in clean home energy, such as solar panels, and in home energy efficiency. New data from the Internal Revenue Service shows that more than 3.4 million American households have already claimed more than $8 billion in home clean energy and energy efficiency credits against their 2023 federal income taxes. were strength. This report presents statistics on residential energy tax credit claims for fiscal year 2023. Investments in clean energy and energy efficiency benefit households by reducing and stabilizing their monthly energy bills, and all Americans by reducing climate change and air pollution.
New data on energy tax credit claims from households
Table 1 summarizes the new data on residential clean energy and energy efficient home improvement tax credits for tax year 2023, filed and processed through May 23, 2024. More than 1.2 million U.S. households have more than $6 billion in clean energy credits. homes claimed. investments – such as solar electricity generation, solar water heating and battery storage, among others – average $5,000 per family. 2.3 million families have claimed more than $2 billion in credits for energy-efficient home improvements – such as heat pumps, efficient air conditioners, insulation, windows and doors – an average of $880 per family.
These figures are expected to rise as more income tax returns are filed and processed, including returns filed by taxpayers who have requested an extension. But even these initial counts are significantly higher than 2021, the last tax year before the IRA took effect. The number of households benefiting from these credits has increased by almost a third and the total value of the credits has increased by almost two-thirds.
Solar investments accounted for the largest number of residential clean energy credit claims. In total, more than 750,000 households reported more than $20.5 billion in qualified real estate solar costs in 2023. Households also reported investments in solar water heating, small wind turbines, geothermal heat pumps, batteries and fuel cells. For reported investments in energy efficient home improvements, more than 250,000 families claimed investments in electric or natural gas heat pumps, more than 100,000 families claimed investments in heat pump water heaters, and nearly 700,000 families claimed investments in insulation and air sealing.
Families in all 50 states, the District of Columbia and Puerto Rico claimed these credits. Nearly half of families claiming one or both credits had incomes of less than $100,000 in 2023.
Table 1: Claimed residential energy tax credits for tax year 2023
| Number of returnsA | Credit valueA, b | |
|---|---|---|
| Residentially clean Energy credit |
1,246,440 |
Total: $6.3 billion,
Average per roundtrip: $5,084 |
| Selected examples | ||
| Solar energy on the roof |
752,300 |
Up to 30% of the costs |
| Batteries |
48,840 |
Up to 30% of the costs |
| Energy efficient house Improvement credit |
2,338,430 |
Total: $2.1 billion,
Average per roundtrip: $882 |
| Selected examples | ||
| Home insulation |
699,440 |
Up to 30% of the costsc |
| Windows and skylights |
694,450 |
Up to 30% of costs or $600c |
| Central air conditioners |
488,050 |
Up to 30% of costs or $600c |
| Pumping heat |
267,780 |
Up to 30% of costs or $2,000 |
| Hot water boilers with heat pump |
104,180 |
Up to 30% of costs or $2,000 |
a Rounded to the nearest ten. Preliminary figures reflecting tax year 2023 returns filed and processed through May 23, 2024. Due to restrictions on the use of the credits, as described in notes b and c, families may not be able to use all eligible investments or report the full costs of those investments.
b The credit value is limited by a family’s tax liability and other claimed credits. If a family is unable to use the full Residential Clean Energy Credit due to the tax cap, they can carry over the unused portion of the credit to the following year. They cannot do this for the Energy Efficient Home Improvement Loan.
c Energy efficiency tax credits other than those for heat pumps and for biomass stoves and boilers are subject to a total annual maximum of $1,200.5
News release from the IRS, Division of Research, Applied Analytics and Statistics.
Comments are closed.