The Energy Efficient Home Improvement Credit Ends in a Couple Months! You Can Still Take Advantage Now!

The Energy Efficient Home Improvement Credit allows for a tax reduction of up to $3,200 per year. The discontinuation of this credit is part of the Inflation Reduction Act of 2022, which set the offer to expire in December 2025. 

Homeowners have only a few more months to take advantage of this program. Learn about the details, including what types of home improvements qualify for the credit.

What Is the Maximum Credit You Can Claim?

The credit, which began on January 1, 2023, allows homeowners to claim up to 30% of qualifying expenses for certain home improvements. The total credit can’t exceed $3,200. It applies only to specific energy-efficient products installed during the relevant tax year and to home energy audits. 

Homeowners can claim up to $1,200 for home improvement costs that increase energy efficiency, including windows, skylights, doors, insulation, and sealing materials. Limits apply to exterior doors ($250 per door) and to windows and skylights ($600). 

Home energy audits qualify for up to $150 in credits, while $600 per item is allowed for certain types of energy-efficient heaters and air conditioners. Property owners can earn an additional $2,000 credit for heat pumps, heat pump water heaters, biomass stoves, and biomass boilers.

How Do You Qualify for the Credit?

This tax credit applies to the taxpayer’s primary residence. Owners of rental properties can’t earn credit for their investment properties. 

In addition, the tax credit is applicable only to existing properties. New construction homes won’t qualify for the Energy Efficient Home Improvement Credit. 

What Is the Residential Energy Property Credit?

Residential energy property covered by the credit includes products that meet the highest efficiency rating set out by the Consortium for Energy Efficiency. 

A homeowner can claim a portion of the cost of labor and equipment for the installation of an energy-efficient central air conditioner. Boilers, furnaces, and water heaters that use natural gas, water, or propane may also qualify for a credit.

Use Your Energy Efficient Home Improvement Credit Without Delay

When you partner with Blue Yeti HVAC & Plumbing Services, we can install your energy-efficient HVAC equipment for you. Our team can also help you choose replacement equipment that meets the requirements for the tax credit. Contact us to request an estimate today!