As the United States looks to utilize more renewable energy sources, there has been numerous incentives introduced. The Inflation Reduction Act introduced federal tax credits for homeowners nationwide.
If you are considering installing solar panels, there has never been a better time as a homeowner. This article will cover Energy-Efficient Home Improvement credits and what remodels qualify for the program.
Energy-Efficient Home Improvement Credits
While there was an energy-efficient home improvement credit before 2023, it had a lifetime value of $500. In the updated program introduced in the Inflation Reduction Act, the credit was increased to $1,200 per year.
The program has been approved to run from January 1st, 2023 to January 1st, 2033. These credits are 30% of a qualifying purchase that improves the efficiency of your home.
How to Qualify For Energy-Efficient Home Improvement Credits
In order to receive a home improvement credit, you must make a qualifying purchase for your property. These purchases are made on equipment that increases the efficiency of your home.
The types of renovations that qualify for the energy-efficient home improvement credits program are:
- Solar Panel Systems
- Exterior Doors that Meet Energy Star Standards
- Exterior Windows and Skylights that Meet Energy Star Standards
Along with the standard $1,200 credit, there is an additional credit that applies for electric or natural gas heat pump water heaters, electric or natural gas heat pumps, and biomass stoves and biomass boilers. These improvements come with a yearly $2,000 credit.
Do Home Improvement Credits Make Remodels More Cost-Effective?
When you want to reduce the overall investment into your home remodel, you can achieve it with tax credits. While your initial investment will remain the same, you can recoup some of the costs after filing your taxes.
The tax credit can be applied for as long as the program remains live and has a maximum yearly limit of $1,200. If applicable over the program's 10-year history, you can receive $12,000 in tax credits.
Learn More About Our Solar Installation Services Today
Dynasty Building Solutions is a top-rated solar company serving the Central Florida area. If you want to add solar panels to your property, we are the team you need for the job. Our solar company has completed numerous installations for homeowners.
Contact us today to request a free project estimate and learn more about our service options. Call to speak with one of our friendly representatives or fill out the online quote form to get started.
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