Energy Tax Credit Calculator

IRA energy tax credits 2026 summary: Residential Energy Credits (25C): heat pump HVAC: 30% credit up to $2,000/year; heat pump water heater: 30% up to $600; insulation: 30% up to $1,200; windows/doors: 30% up to $600; home energy audit: 30% up to $150; annual cap: $3,200/year (resets annually — can claim every year); Solar (25D): Residential Solar Investment Tax Credit: 30% of system cost; no cap; applies to solar panels + battery storage + installation; EV Credits (30D): new EV: $7,500 credit (income limits: $150K single, $300K married); used EV: $4,000 (income $75K single); commercial EV: 30% up to $7,500 for autos, $40,000 for heavy vehicles; Transferability: new in 2024 — sell unused credits to other taxpayers; dealers can apply credit at point of sale; Commercial Credits: Investment Tax Credit (ITC): 30% base + up to 10% bonus for domestic content + 10% energy community; Production Tax Credit (PTC): alternative to ITC for qualifying projects.

IRA transferability of energy tax credits: What is credit transferability: IRA (2022) allowed certain energy credits to be bought and sold; sellers: businesses with excess clean energy credits they cannot use; buyers: profitable businesses with tax liability who need credits; How it works: seller generates ITC, PTC, or other qualifying credit; seller lists on marketplace at discount to face value; buyer purchases for cash (typically 90-97 cents per dollar of credit); buyer claims credit on their tax return; typical discount: ITC from solar: 91-95 cents per dollar; Wind PTC: 90-93 cents; Transferability marketplace: CohnReznick Capital, Reunion Infrastructure, Basis Climate, Crux (marketplace platform); Credit types eligible for transfer: ITC (Investment Tax Credit); PTC (Production Tax Credit); CCUS Credit (45Q); Advanced Manufacturing Credit (45X); Clean Fuel Production Credit (45Z); Credits NOT transferable: personal tax credits (25D residential solar, 30D EV credits).

Family offices (single or multi) make sense at $50M+ in investable assets. Below that, private banking (JP Morgan Private Bank, Goldman Sachs PWM, UBS) offers similar services with lower minimums ($5-25M). Family offices provide consolidated reporting, direct deal access, and custom investment mandates unavailable at private banks. Multi-family offices (Bessemer Trust, Glenmede) offer a middle ground at $10M+ with family-office-level service at lower cost.

Most wealth advisors recommend 3-5% of liquid net worth in cash/cash equivalents for UHNW individuals — enough to cover 12-24 months of lifestyle expenses plus opportunistic investments. Excess cash above this benchmark costs 5-8% annually in opportunity cost vs. diversified portfolios. Treasury bills, money market funds, and short-duration bonds provide liquidity with yield while maintaining capital preservation objectives.