Home improvements and upgrades
CT homeowners can use tax credits to reduce the cost of home energy efficiency improvements, energy-saving renovations, and installing efficient heating and cooling systems. To learn more about the requirements for eligible equipment below, visit the IRS website.
Find your qualifying equipment and tax credit amount!
With the 2025 passage of the “One Big Beautiful Bill,” (OBBB) many clean energy tax credit expiration dates have changed. Please see the tables below for more information.
| Equipment type | Tax Credit Available for the Specified Tax Years |
|---|---|
| Heating, Cooling, and Water Heating | |
| Heat pumps |
30% of cost, up to $2,000 per year New termination date: Tax credit available for eligible expenditures until December 31, 2025 |
| Heat pump water heaters | |
| Biomass stoves | |
| Geothermal heat pumps |
30% of cost New termination date: Tax credit available for eligible expenditures until December 31, 2025 |
| Efficient air conditioners* |
30% of cost, up to $600 New termination date: Tax credit available for eligible expenditures until December 31, 2025 |
| Efficient heating equipment* | |
| Efficient water heating equipment* |
30% of cost, up to $600 New termination date: Tax credit available for eligible expenditures until December 31, 2025 |
| Other Energy Efficiency Upgrades | |
| Electric panel or circuit upgrades for new electric equipment* |
30% of cost, up to $600 New termination date: Tax credit available for eligible expenditures until December 31, 2025 |
| Insulation materials* |
30% of cost New termination date: Tax credit available for eligible expenditures until December 31, 2025 |
| Windows, including skylights* |
30% of cost, up to $600 New termination date: Tax credit available for eligible expenditures until December 31, 2025 |
| Exterior doors* |
30% of cost, up to $500 for doors (up to $250 each) New termination date: Tax credit available for eligible expenditures until December 31, 2025 |
| Home Energy Audits* |
30% of cost, up to $150 New termination date: Tax credit available for eligible expenditures until December 31, 2025 |
| * Subject to cap of $1,200 per year | |
Save on electric vehicles and electric vehicle chargers
Federal tax credits are available to Connecticut residents and businesses to replace their gas-powered vehicles with electric vehicles (EVs), with a growing list of eligible models to choose from. The total tax credit for EVs varies by vehicle manufacturer and model, vehicle weight, whether it's new or used, and other factors. As of 2024, buyers can transfer the IRA tax credit to a car dealership to receive a point-of-sale discount equivalent to the tax credit amount on eligible new and used EVs. To learn more about these EV tax credits visit here.
Clean Vehicle Tax Credit by Type
With the 2025 passage of the “One Big Beautiful Bill,” (OBBB) many clean energy tax credit expiration dates have changed. Please see the tables below for more information.
| Equipment Type | Tax Credit Available for the Specified Tax Years |
|---|---|
| Used Electric Vehicle (2022 or prior) |
30 percent of sale price up to $4,000 New termination date: Terminated effective September 30, 2025 |
| New Electric Vehicle (purchased from 2023 - 2032) |
Up to $7,500 based on battery component and mineral sourcing New termination date: Terminated effective September 30, 2025 |
| Electric Vehicle Charging | |
| Electric Vehicle (EV) Charging Station |
30% for individuals, limited to $1,000. For commercial projects, including by multifamily landlords and managers, EV charging station is 30% per charger, up to $100,000 per charger. New termination date: Will be terminated effective June 30, 2025 |
Solar and energy storage
Installing solar panels or battery storage can help homeowners to save money on energy bills. When combined, these two technologies can also let you store excess clean energy generated during the day for use at night or during a power outage.
Connecticut residents who invest in solar or battery storage for their homes may qualify for the Residential Clean Energy Credit, which equals 30% of the cost for projects installed between 2022-2032. There's no annual or lifetime limit on the tax credit. To learn more, visit: IRS- Residential Clean Energy Credit.
| Equipment Type | Tax Credit Available for the Specified Tax Years |
|---|---|
| Solar (electricity) |
30% of cost New termination date: Tax credit available for expenditures until December 31, 2025 |
| Battery Storage systems, with a capacity of 3 kWh or more |
30% of cost New termination date: Tax credit available for expenditures until December 31, 2025 |