Residential Tax Credit Opportunities
Home Improvements and Upgrades
CT homeowners can use IRA 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!
| Equipment type |
Tax Credit Available for 2023-2032 Tax Years |
| Heating, Cooling, and Water Heating |
|
| Heat pumps | 30% of cost, up to $2,000 per year |
| Heat pump water heaters |
|
| Biomass stoves |
|
| Geothermal heat pumps |
30% of cost |
| Efficient air conditioners* |
30% of cost, up to $600 |
| Efficient heating equipment* |
|
| Efficient water heating equipment* | 30% of cost, up to $600 |
| Other Energy Efficiency Upgrades | |
| Electric panel or circuit upgrades for new electric equipment* | 30% of cost, up to $600 |
| Insulation materials* |
30% of cost |
| Windows, including skylights* |
30% of cost, up to $600 |
| Exterior doors* | 30% of cost, up to $500 for doors (up to $250 each) |
| Home Energy Audits* | 30% of cost, up to $150 |
| * Subject to cap of $1,200 per year | |
Save on Electric Vehicles and Electric Vehicle Chargers
The IRA helps Connecticut residents and businesses 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
| Equipment Type |
Tax Credit Available for 2023-2032 Tax Years |
| Used Electric Vehicle (2022 or prior) |
30 percent of sale price up to $4,000 |
| New Electric Vehicle (purchased from 2023 –2032) |
Up to $7,500 based on battery component and mineral sourcing |
| 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. |
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 2023-2032 Tax Years |
| Solar (electricity) | 30% of cost |
| Battery Storage systems, with a capacity of 3 kWh or more |
30% of cost |