IRA Tax Credits – Existing Homes

The Inflation Reduction Act provides two credits (25C and 25D) for efficiency and clean energy upgrades in existing homes. The Energy Efficient Home Improvement Credit (25C) was increased and extended from a $500 lifetime credit to a $3,200 yearly credit. The new Residential Clean Energy Credit (25D) offers a 30 percent, uncapped tax credit for residential energy efficient property and allows taxpayers to carry over unused tax credits. The tax credits for existing homes are non-refundable but can be combined with other funding on the national, state, and local level to reduce energy costs in homes and buildings.