0924 Publ 5886-B (PDF)

Official source: IRS Forms, Instructions & Publications (https://www.irs.gov/pub/irs-pdf/p5886b.pdf), retrieved 2026-10-03. U.S. Government work (17 U.S.C. § 105).

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New Energy Efficient Homes Credit (45L)

Energy-Efficient Home Improvement Credit (25C)

❯ Landlords must also be residents of the dwelling to claim this credit ❯ 30% maximum credit for qualifying improvements, such as heat pumps, other

efficient HVAC systems, building envelope improvements, and more

Energy-Efficient Commercial Buildings Deduction (179D)

❯ Up to $5.00 per sq. ft. for depreciable improvements to interior lighting systems,

HVAC/water systems, and building envelope that reduce total annual energy and power costs of such systems ❯ Available to commercial building owners or long-term lessees, including certain

multifamily residential properties ❯ Energy/power savings must be at least 25% (50% for maximum deduction) ❯ For more information, please visit Energy Effcient Commercial Buildings Deduction

Depreciation of Capital Expenses

❯ In general, businesses, including real estate properties, may deduct depreciation of

capital expenses from their income ❯ This includes capital investments in clean energy for residential properties, such as

for heat pumps, electrical upgrades, solar power equipment

Certain clean energy installations and energy efficiency improvements to residential properties are eligible for tax credits or deductions.

(Prevailing Wage and Apprenticeship requirements are applicable in certain cases, providing greater value to credits and deductions)

Consider the following credits Installation/Improvement and deductions:

Find out more about Clean Energy Tax Incentives, please visit IRS.gov/CleanEnergy

Publication 5886-B (9-2024) Catalog Number 95284C Department of the Treasury Internal Revenue Service www.irs.gov