What are residential energy tax credits?

The Energy Efficient Home Improvement Credit (Form 5695) allows 30% of costs for qualifying upgrades like insulation, exterior windows, heat pumps, and electric panel upgrades, up to $1,200 per year (higher limits for heat pumps and biomass stoves). The Residential Clean Energy Credit gives 30% (no cap) for solar panels, solar water heaters, small wind turbines, and battery storage. Both credits can be claimed through at least 2032.