Attention savvy homeowners, we have some exciting news for you! If you're all about turning your humble abode into an energy-efficient haven, in 2023, you have the opportunity to earn some tax credits by sprucing up your living space with energy-efficient upgrades. Thanks to the Inflation Reduction Act of 2022, the credit amounts have had a glow-up and the types of expenses that qualify are now as expansive as your imagination when picking out new decor!
Do You Qualify
So, who gets to dance their way to these tax credits? If you've been jazzing up your primary home, the one where you spend most of your time pondering life's mysteries, congratulations – you're in the running! However, before you start picturing a villa in Tuscany, keep in mind that your improved home should be right here in the good ol' United States.
Oh, and a little secret: if you're a homeowner who also moonlights as a second-home owner (and not as a landlord), you're not left out of the energy-saving party either. Even renters who are jazzing up their rental spots with energy-efficient goodies might get to join in on the credit-fueled fun!
Upgrades that Qualify
So, let's talk about what kind of upgrades can turn your home into an energy-saving paradise. Here's the magical list of improvements that could make you the energy efficiency champ:
Fancy exterior doors that make your house the envy of the neighborhood.
Windows that not only let the sunshine in but keep your energy bills from soaring out.
Insulation materials that give your home a cozy sweater-like embrace.
Central air conditioners that keep you chill without giving your wallet a heatstroke.
Heat pumps and heat pump water heaters – making warm water a guilt-free pleasure.
Biomass stoves and boilers for those who want to snuggle up to eco-friendly warmth.
Guess what? Even home energy audits can give you a nod towards these credits!
The Icing on the Cake
The maximum credit you can score each year is a neat $1,200 for energy property costs and all those energy-efficient home improvements. But, don't forget, there are some limits: doors get up to $250 per door and $500 total, windows up to $600, and home energy audits up to $150.
Feeling the heat with heat pumps, biomass stoves, or biomass boilers? Well, those could fetch you a generous $2,000 per year.
Here's the scoop on the actual credit amount – it's a percentage of your total improvement costs in the year of installation. Just remember, in certain cases, the credit might be capped, but it's still a win-win for both your home and your wallet!
Here’s your chance to make your home not just cozy and stylish but also eco-friendly, all while giving your tax situation a healthy boost. Time to roll up those sleeves and get those energy-efficient dreams turning into reality!
Questions?
Take advantage of this tax credit opportunity, and contact TrueBlaze Advisors so we can answer any questions you may have.