The IRS recently updated its frequently asked questions (FAQs) about the energy-efficient home improvement credit and the residential clean energy property credit in Fact Sheet 2025-01.
The Inflation Reduction Act of 2022 amended the energy-efficient home improvement credit under Section 25C of the Internal Revenue Code and the residential clean energy property credit under Section 25D of the tax code.
The IRS stressed that the updated FAQs provide details on the Inflation Reduction Act’s changes to the tax credits, information on eligible expenditures and examples of how the credit limitations work. Read more.