ENERGY EFFICIENT HOME IMPROVEMENT AND RESIDENTIAL CLEAN ENERGY PROPERTY CREDITS FREQUENTLY ASKED QUESTIONS UPDATED:

The Internal Revenue Service has updated frequently asked questions in Fact Sheet 2024-15 to addresses the federal income tax treatment of amounts paid for the purchase of energy efficient property and improvements.

These FAQs supersede earlier FAQs that were posted in Fact Sheet 2022-40, on December. 22, 2022.

The FAQs revisions are as follows:

• General questions— Question 4

On April 5, 2024, the Internal Revenue Service issued Announcement 2024-19 that addressed the federal income tax treatment of amounts paid for the purchase of energy efficient property and improvements.

In short - taxpayers who receive rebates for the purchase of energy efficient homes will not include the value of those rebates as income on their tax returns, however they will need to reduce the basis of the property when they sell it by the amount of the rebate.