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March 27, 2025
Question

Energy Efficient Home Improvement Credit

  • March 27, 2025
  • 1 reply
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We got a contract to buy energy efficient window replacements in November of 2024.  The window company charged us for part of the contract in 2024 and the rest in 2025 when the work was done.  Do I take the energy efficient home improvement credit in 2024 or 2025.

    1 reply

    March 27, 2025

    You can take the credit in 2025 after the windows are installed and the work is complete. 

    The Home Improvement Energy Efficient Credit is a non-refundable credit

    • Worth up to 30% of costs with a maximum credit $2,000 for
      • Air source heat pumps
      • Heat Pump Water Heaters
      • Biomass Stoves or Boilers
    • Worth up to 30% of qualifying costs for a maximum combined total of $1,200 for the following:
    • You can combine the $2,000 credit with the $1,200 credit for a total of $3,200
    • This credit is a use it or lose it credit.  If you do have enough tax liability in the year you buy and install the item, you will not be able to carry the credit forward.
    • NOT available for new construction.
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