Eligible households would receive tax credits for home energy costs

Eligible taxpayers would claim a tax credit for part of their home heating and cooling costs. Only fuel or electricity used to heat or cool the taxpayer’s main home would qualify. Costs reimbursed or covered by a government program would not count. The credit would cover 75% of eligible costs above 3% of the taxpayer’s adjusted income measure. The maximum credit would be $1,500, or $3,000 for people filing a joint tax return.

The credit would have income limits and cover only specified tax years. Taxpayers would qualify only if their adjusted income measure did not exceed $75,000, or $150,000 for a joint return. The income measure would use adjusted gross income calculated without the exclusions in tax code sections 911, 931, and 933. If enacted, the credit would apply to tax years beginning after December 31, 2024, and on or before December 31, 2027.