Taxpayers Claimed $8 Billion in Inflation Reduction Act Tax Credits for Clean Energy and Efficient Home Improvements

The Department of the Treasury and the Internal Revenue Service have issued statistics on the Inflation Reduction Act clean energy tax credits for tax year 2023.

The Inflation Reduction Act, or IRA, extended and expanded tax credits PDF that allow taxpayers to claim residential and energy efficient home energy credits.

Taxpayers have claimed more than $6 billion in credits for residential clean energy investments—which include solar electricity generation, solar water heating and battery storage—and more than $2 billion for energy efficient home improvements — which include heat pumps, efficient air conditioners, insulation, windows and doors — on 2023 tax returns filed and processed through May 23, 2024.

Residential and Energy Efficient Home Improvement Credit

Credit	Number of returns	Credit value
Residential Clean Energy Credit	1,246,440	Total: $6.3 billion, Average per return: $5,084
Rooftop solar	752,300	Up to 30% of cost
Batteries	48,840	Up to 30% of cost
Energy Efficient Home Improvement Credit	2,338,430	Total: $2.1 billion, Average per return: $882
Home insulation	669,440	Up to 30% of costc
Windows and skylights	694,450	Up to 30% of cost or $600c
Central air conditioners	488,050	Up to 30% of cost or $600c
Doors	400,070	Up to 30% of cost, $250 per door, or $500 total
Heat pumps	267,780	Up to 30% of cost or $2,000
Heat pump water heaters	104,180	Up to 30% of cost or $2,000

Homeowners are eligible for tax credits that were created, extended or expanded by the Inflation Reduction Act, when making certain efficiency-increasing improvements to their homes. Some renters are also eligible for specific expenses. Taxpayers can claim the same or varying credits year after year with new products purchased, but some credits have an annual limit.

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