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December 22, 2022

IRS issues FAQs on IRA updates to energy efficient home improvement and residential clean energy credits

In a new Fact Sheet (FS-2022-40), the IRS answers a series of frequently asked questions (FAQs) regarding energy efficient home improvements and residential clean energy property credits, as amended by the Inflation Reduction Act (IRA). The FAQs provide details on the IRA changes, information on eligible expenditures and examples. Reliance information available here indicates in part that, although IRS FAQs are nonprecidential, "a taxpayer's reasonable reliance on an FAQ (even one that is subsequently updated or modified) is relevant and will be considered in determining whether certain penalties apply." A Tax Alert is forthcoming.

Published by NTD’s Tax Technical Knowledge Services group; Carolyn Wright, legal editor