Updated FAQs were released to the public in Fact Sheet 2025-01 PDF, Jan. 17, 2025. This fact sheet contains all of the FAQs in one downloadable PDF. Q1. May a taxpayer include labor costs when calculating the credit? (updated Jan. 17, 2025) A1. A taxpayer may include labor costs only for certain expenditures. A taxpayer may include in residential energy property expenditures the labor costs properly allocable to the onsite preparation, assembly, or original installation of qualified energy property (electric or natural gas heat pump water heaters; electric or natural gas heat pumps; central air conditioners; natural gas, propane, or oil water heaters; natural gas, propane, or oil furnaces or hot water boilers; biomass stoves or boilers; oil furnaces or hot water boilers; and improvements to, or replacements of, panelboards, sub-panelboards, branch circuits, or feeders). A taxpayer may not include the labor costs for qualified energy efficiency improvements (exterior windows or skylights; exterior doors; and insulation materials or systems (including air sealing materials or systems)). Related Energy efficient home improvement: Qualifying expenditures and credit amount Energy efficient home improvement: Energy efficiency requirements Energy efficient home improvement: Qualifying residence Energy efficient home improvement: Labor costs Energy efficient home improvement: Timing of credits Energy efficient home improvement: PIN requirements Energy efficient home improvement: General questions Energy efficient home improvement: Examples - How the credit limits work Previous updates to FAQs Fact Sheet 2024-15 PDF, April 17, 2024 Fact Sheet 2022-40 PDF, Dec. 22, 2022
