Three Things to Know About the New Energy Efficient Home Tax Credit
YOU MAY BE ABLE TO RECEIVE A TAX CREDIT FOR CERTAIN ENERGY-EFFICIENT HOME IMPROVEMENTS.
The Inflation Reduction Act of 2022 expanded tax credits for energy-efficient home improvements through 2033. Certain energy-efficient home improvements made during that time are eligible for the tax credit. The tax credit is the lesser of 30% of the costs of the improvement or $1,200 per year for up to 10 years ($12,000 total). You may be able to receive an additional $2,000 per year for making qualified investments in electric or natural gas heat pump water heaters, heat pumps, and biomass stoves and boilers.
WHICH HOME IMPROVEMENTS ARE ELIGIBLE FOR TAX CREDITS?
Certain improvements like energy-efficient windows, doors, water heaters, furnaces, and air conditioners may be eligible for the tax credit. A full list of eligible improvements and credit amounts can be found on the Energy Department's Tax Credit Table.
WHO CAN CLAIM THE TAX CREDIT?
Homeowners and renters who purchase energy and other efficient appliances and products may be eligible to claim the tax credit. The residential clean energy credit (Part I) is available for both existing homes and homes being constructed. The energy-efficient home improvement credit (Part II) is only available for existing homes. For more information on eligibility and how to claim the tax credit, please see IRS form 5695 and its instructions.
PLEASE NOTE: THIS ARTICLE IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE LEGAL, TAX, OR FINANCIAL ADVICE. PLEASE CONSULT WITH A QUALIFIED TAX ADVISOR FOR SPECIFIC ADVICE PERTAINING TO YOUR SITUATION. FOR MORE INFORMATION ON ANY OF THESE ITEMS, PLEASE REFERENCE IRS PUBLICATION 5695.
CLICK HERE for more information on the IRS website!
Source: Momentifi