Do not miss these credits on your tax return

QTA Consultants, Ltd./Renata Bliumaite

Go green at home.

Under the Inflation Reduction Act (IRA) passed in 2022, taxpayers can benefit from two revamped credits for energy-efficient home improvements on their 2023 returns.

• Energy efficient home improvement credit: This credit is equal to 30% of the cost of qualified energy-efficient improvements made to your home in 2023, up to a total maximum credit of $3,200.

• Residential clean energy credit: If you invest in clean-energy improvements for your main home in 2023—including solar, wind, geothermal, fuel cells or battery storage—you may qualify for this credit equal to 30% of the cost of qualified equipment.

Tip: Special rules and dollar caps may apply

Connect with electric vehicle credits.

You can claim a tax credit for buying an eligible electric vehicle (EV), including plug-in hybrids, that meets certain energy consumption standards. The maximum credit is $7,500. As mandated by the IRA, the credit is only available on 2023 returns if you’re a single filer with a modified adjusted gross income (MAGI) of $150,000 or less, or $300,000 for joint filers. Also, the credit can’t be claimed for passenger vehicles costing more than $55,000, or $80,000 for vans, sports utility vehicles (SUVs) and pickup trucks. The vehicle must be powered by batteries with materials sourced from the U.S. (or its free trade partners) and assembled in North America.

Tip: The IRA also authorizes a credit of up to $4,000 for used EVs subject to special rules and a MAGI phase-out.