Submitted By: someone
Answered: April 6, 2021 11:34 pm

Has the residential energy credit been extended?

The nonbusiness energy credit, which is for adding insulation and certain other energy improvements to a principal residence, has been extended through 2020. The credit for solar and certain other renewable energy added to a principal residence or vacation home applies for 2020, 2021 and 2022 at the rate of 26% (it was 30% prior to 2020). The credit will be 22% in 2023, but zero thereafter unless Congress extends it.

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Tax Glossary

Revenue ruling

A revenue ruling is the Commissioner’s “official interpretation of the interpretation of the law” and generally is binding on revenue agents and other IRS officials. Taxpayers generally may rely on published revenue rulings in determining the tax treatment of their own transactions that arise out of similar facts and circumstances.

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