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Energy Tax Credit

August 23, 2022

What Is an Energy Tax Credit?

An energy tax credit is a government-sponsored incentive that reduces the cost for people and businesses to use alternative energy resources. Eligible individuals or entities who meet the criteria are reimbursed for their efforts to make the planet “greener” when paying income taxes, with the credit amount being wiped, dollar for dollar, from the total sum owed to the Internal Revenue Service (IRS).

There are currently various federal energy-related tax incentives in motion. Each one carries unique requirements and serves different portions of the population, with some targeted at individual homeowners and others at companies.

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