Frequently asked questions about energy efficient home improvements and residential clean energy property credits – Residential Clean Energy Property Credit – General questions

 

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. Will a taxpayer qualify for the credit if the property installed has been used by another individual? (added Jan. 17, 2025)

A1. No. Used property is not eligible for the credit.

Q2. Is the credit refundable or nonrefundable? (added Jan. 17, 2025)

A2. The credit is a nonrefundable personal tax credit. A taxpayer claiming a nonrefundable credit can only use it to decrease or eliminate tax liability. A taxpayer will not receive a tax refund for any amount of the credit that exceeds the taxpayer’s tax liability for the year.

Q3. Is a taxpayer who is subject to the alternative minimum tax (AMT) eligible to claim the credit? (added Jan. 17, 2025)

A3. Yes. A taxpayer who is subject to the AMT is eligible to claim the credit and may offset the AMT with the credit.