Can I claim an electrical panel upgrade on my taxes?
You’re thinking about upgrading your electrical panel—maybe because your lights flicker, your breakers are tripping, or you’re installing something new like an EV charger or heat pump. But the price tag gives you pause. Then someone mentions a tax credit. Your ears perk up.
At Five Star Services, we hear this question a lot: Is there a tax credit for upgrading my electrical panel? The short answer is yes—but with some conditions. Let’s break it down, no fluff, just facts—from stubbornly honest electricians who’d rather give you the full picture than a sugar-coated one.
What’s This Tax Credit About?
The federal government rolled out a few incentives under the Inflation Reduction Act (IRA) to help homeowners make energy upgrades. That includes tax credits for certain electrical panel upgrades that support energy-efficient systems.
If your panel upgrade directly supports something like a new heat pump, solar system, or EV charger installation, you could qualify for up to 30% back as a federal tax credit—capped at $600 for the panel itself.
You won’t get a credit just for swapping out an old panel with no additional upgrades attached. But if you’re doing it to prepare for clean energy or energy-saving improvements, that’s where the benefit kicks in.
Here’s When to Call Us
You should reach out if:
- You’re planning to install an EV charger or a heat pump
- You want to switch to solar power
- You’ve been told your current panel isn’t large enough
- You need to upgrade to 200 amps to meet energy demands
- You’ve got an old fuse box or outdated panel
We’ll come out, take a look, and let you know if your upgrade fits the credit guidelines. We’ll also help make sure the installation is done by the book, because tax credits only apply to qualified, code-compliant upgrades.
The Steps We Follow for Your Panel Upgrade
Here’s what we do when upgrading your panel from the first knock to the final breaker label:
1. Evaluate Your Current Panel
We inspect your current service, check for code issues, and ask what upgrades you’re planning. No guessing—just a full look at your load needs and usage.
2. Verify If It Supports an Energy Upgrade
We determine if your panel upgrade is connected to a qualifying system like solar, EV charging, or heat pump installation. If it is, you’re on the right path to the credit.
3. Secure Permits and Schedule
We handle permits, schedule inspections, and coordinate with your local utility if a service upgrade is needed.
4. Replace the Panel
We shut off the power, remove the old panel, install the new one, and connect all circuits cleanly. We label everything clearly, tighten every connection, and test it under load.
5. Document the Job
We provide the proper documentation you’ll need to file for the credit, including invoices that show the panel upgrade’s connection to an energy-efficient improvement.
FAQs
How much can I actually get back?
Up to 30% of the panel upgrade cost, capped at $600. If your upgrade also supports other improvements—like solar or heat pump installations—you may qualify for additional credits through those systems.
Does the credit apply to just any panel upgrade?
No. It has to support a qualified energy upgrade like an EV charger, solar array, or efficient HVAC system. Upgrading just for capacity or age doesn’t qualify by itself.
Is this a rebate or a credit?
It’s a federal tax credit, not an instant rebate. You’ll claim it when you file your taxes for the year the work was done.
Do I need to do all the upgrades at the same time?
No, but the panel upgrade needs to be part of the same general energy efficiency plan. For example, you can upgrade the panel now and install the heat pump later—but both should be tied to the same project timeline.
Can you help with paperwork?
Yes. We give you an itemized invoice and written confirmation of the energy-related purpose of the panel upgrade so your tax preparer has what they need.
Don’t Leave Money on the Table
Tax credits aren’t handed out often. This one is part of a push to help homeowners shift toward energy-efficient systems—and we think that’s a smart move. But it only works if the job is done right.
At Five Star Services, we’ve helped customers upgrade their panels and qualify for energy-related incentives without the guesswork. We don’t oversell. We don’t dodge questions. We just tell you the truth and do the job right—every time.
We have your back.
If you’re thinking about a panel upgrade and wondering if the tax credit applies, give us a call. We’ll take a look, walk you through your options, and if it qualifies—we’ll make sure you’ve got what you need to claim every penny. That’s the Five Star way. Clear answers. Clean work. Honest help. Let’s get started before the next power surge reminds you that your panel’s past its prime.
