Can I go back and claim Energy Efficient Home improvement credit for upgrades we did years ago?

Thanks for the detailed response! So if I understand correctly, I can still claim for improvements made in 2021, 2022, and 2023 by filing amended returns, but anything from 2019 or 2020 is too late now? Also, do you know if the manufacturer certifications need to be obtained at time of purchase? I still have all my receipts but I'm not sure I ever received specific energy efficiency certification documents for some of the older improvements.

You've got it right about the timeline - generally you can amend returns from 2021-2023, but 2019-2020 would be outside the amendment window unless you filed or paid taxes late for those years, which might extend your deadline. The manufacturer certifications don't necessarily need to be obtained at the time of purchase. Many manufacturers make these certificates available online, so you can download them now. The important thing is that the products you purchased qualified at the time they were installed. Look for Energy Star ratings or check the manufacturer's website for tax credit qualification information for your specific models and installation dates.

Did taxr.ai handle the actual amendment filing process or just tell you what you qualified for? I'm in a similar boat with geothermal heat pump installation from 2022 that I forgot to claim.

I'm a bit skeptical about these services. How does it actually verify that your windows or whatever meet the specific energy requirements? Seems like you'd still need the manufacturer certifications either way.

It doesn't file the amendment for you - it analyzes your documentation and tells you exactly what you qualify for and what forms you need. It creates a detailed report showing which credits you're eligible for and explains why specific improvements do or don't qualify. The service works by having you upload your receipts and any product documentation you have. It can often identify products by model numbers and cross-reference them with their database of qualifying products. For items it can't automatically verify, it flags them and explains what additional documentation you'd need. You're right that manufacturer certifications are still ultimately required, but it helps you identify which ones you need and sometimes even provides links to where you can download them from manufacturers.

How does this actually work? I thought it was impossible to get through to the IRS by phone these days. Is this just paying someone to wait on hold for you or something?

Yeah right. Like anyone's getting through to the IRS in 15 minutes. I'll believe it when I see it. I've spent literal hours on hold and usually get disconnected before reaching anyone.

It basically handles the whole IRS phone maze and waiting process for you. Instead of you sitting on hold for hours, their system navigates through the IRS phone tree and waits in the queue. When an agent is actually available, you get a call connecting you directly to them. It's not just paying someone to wait - it's an automated system that holds your place in line and calls you when it's your turn. So you're right to be skeptical, but that's why it works so well. The IRS lines are still just as busy, but you don't have to be the one sitting there listening to the hold music. I was suspicious too, but got a callback with an actual IRS agent who answered all my questions about energy credits that span multiple tax years.

Are you sure about those numbers? I thought the pre-2023 credit was 10% of the cost up to varying limits depending on the type of improvement, not a straight $500 lifetime limit?

You're right that there's more nuance to it. The pre-2023 credit (called the Nonbusiness Energy Property Credit) had a $500 lifetime limit, but that was after calculating the credit amounts. The calculation was 10% of the cost for many improvements (like insulation, roofs, etc.) and specific dollar amounts for others (like $300 for qualified energy efficient central air conditioning). Starting in 2023, the renamed Energy Efficient Home Improvement Credit is much more generous with annual limits instead of lifetime limits. It's now 30% of the costs up to $1,200 per year (with sublimits for certain items), plus that separate $2,000 annual limit for heat pumps, heat pump water heaters, and biomass stoves/boilers. This is why documenting exactly when improvements were made is so important - the available credit amounts vary dramatically depending on the tax year.

Good point! Does anyone know where to find a comprehensive list of state energy credits? I'm in Massachusetts and heard we have some good incentives but can't find clear info.

@a5b12e76d115 For Massachusetts specifically, check out the Mass Save program website (masssave.com) - they have rebates and incentives that stack with federal credits. The Database of State Incentives for Renewables & Efficiency (DSIRE) at dsireusa.org is also a great resource for finding all available state and local incentives by zip code. Just search your location and it'll show you everything available in your area, including utility company rebates that people often overlook.