Claim new home energy tax credits to maximize savings

Claim new home energy tax credits to maximize savings

Claim New Home Energy Tax Credits to Maximize Savings

Federal tax credits created through the Inflation Reduction Act (IRA) to help people make their homes more energy efficient can help Oregonians save even more this tax season.

The credits cover many of the same home energy upgrades that Energy Trust offers cash incentives for, meaning customers can claim tax credits in addition to getting Energy Trust incentives for upgrades made in 2023.

Understanding the details of the tax credits and incentives is key to taking advantage of all available savings. Home improvements that qualify for tax credits through IRA include:

How to claim the federal tax credits

For all improvements, receipts and any manufacturer’s certification statements are required when claiming tax credits. When filing your 2023 tax return:

  1. Fill out Form 5695: This is the tax form used to claim credits and is available through the IRS website or tax preparation software.
  2. Fill in the details: Enter the costs of the energy-efficient improvements in the corresponding sections.
  3. Attach to your tax return: Once completed, attach Form 5695.
  4. Consult a professional: Consider consulting a tax professional to help maximize your benefit.

There is an annual cap on federal home energy tax credits of $1,200, with sub-caps on individual items. Details are available here.

The cap does not apply to a $2,000 tax credit for a heat pump or heat pump water heater. If you installed either a heat pump or heat pump water heater in 2023, you can claim $2,000 for those qualifying product(s) and an additional $1,200 for any other qualifying upgrades.

If you installed solar panels or battery storage in 2023, you may qualify for state rebates along with Energy Trust incentives and a federal tax credit.

More information about federal tax credits, Energy Trust incentives and where to start for energy saving at home are available on Energy Trust’s website: