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Guide

2024 IRA Clean Energy Tax Credits

It's tax season again, and we want to make sure you are equipped to take advantage of the tax credits for energy efficiency and clean energy upgrades available this year and are informed about what will be available for the 2024 tax year. Due to the Inflation Reduction Act (IRA), residents can already take advantage of some increased tax credits when they file this year. However, eligibility and specific details vary, so we always recommend consulting with a tax professional for more information.

If you received a DCSEU rebate for a home energy efficiency upgrade in 2023, you may qualify for a tax credit on your upgrade as well.

Here are some residential tax credits residents can take advantage of now:

Solar and Energy-Efficient Upgrades

Rooftop Solar

DC is one of best places to get rooftop solar in the country. Thanks to changes made by the IRA, households can receive up to 30% tax credit on installing rooftop solar starting from their 2022 tax filing. The credit decreases down to 26% in 2033.

Energy-Efficient Upgrades

Homeowners filing in 2024 can receive a tax credit to cover up to 30% up to an annual maximum of $1200 (heat pumps, biomass stoves, and boilers have a separate annual tax credit limit of $2000). This credit is subject to per item limitations with no lifetime limit.

2023 tax credits include:

Equipment/Service

Credit Amount

Windows

$600 across all windows

Exterior Doors

$250 per door, $500 across all doors

Insulation

No property-specific limit, but subject to annual limit

Heat Pump Water Heaters

$2000 total

Heat Pumps

$2000 total

Biomass Stoves or Boilers

$2000 total

Central Air Conditioners

$600 per AC unit

Electric Panel Upgrade (Heavy-Up)

$600 per property

Home Energy Audit

$150 total

 

Check out DCSEU rebates for energy-efficient home heating & cooling that will save households an additional $50-$700 on these upgrades.

Replacing Heating & Cooling Systems

Heat pumps use electricity to transfer heat from a colder area to warmer area of a building. It is commonly used for heating and cooling buildings and can be more energy-efficient than traditional heating and cooling systems.

Homeowners can get a tax credit up to $2000 when making the switch to a heat pump. District residents may also qualify for a $375-$700 rebate on a heat pump upgrade with a DCSEU rebate.

Electric Vehicles

Bought a new electric vehicle in 2023? You can get a tax credit up to $7,500 if your vehicle qualifies.

Here are some qualifications your vehicle must meet:

Purchased a used electric vehicle? You may qualify for a tax credit of 30% of the sale price up to $4,000.

The vehicle must:

Check out these sites to get even more details about the Inflation Reduction Act tax credits and what's available in 2023:

As funds from the Inflation Reduction Act continue to rollout, stay on the lookout for updated tax credits and rebate information. Many of these tax credits will be expanded next season. Until then, we hope you continue to take advantage of energy-efficient upgrades and savings with rebates from the DCSEU. As written, the IRA directs all funding for efficiency rebate programs through State Energy Offices. In the case of the District of Columbia, this means the District Department of Energy & Environment (DOEE), which administers the DCSEU contract. As this funding becomes available, the DCSEU will communicate with our customers and partners about what, if any, role the DCSEU will have.

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