Q&A of the Week May 15, 2024
Question
What is the Energy Efficient Home Improvement Credit?
Answer
The Energy Efficient Home Improvement Credit is a credit up to $3,200 for qualified energy-improvements to your home after January 1, 2023.
Qualified expenses include:
Exterior doors, windows and skylights
Insulation and air-sealing materials or systems
Natural gas, propane or oil water heaters
Natural gas, propane or oil furnaces and hot water boilers
You can claim up to $1,200 per year on energy property costs and energy efficient home improvements. The limits are:
$250 per exterior door and two doors total ($500 total limit)
$600 for windows
$150 for home energy audits
You can claim up to $2,000 per year on qualified heat pumps, biomass stoves or biomass boilers.
Remember to keep detailed records and receipts. For questions, please consult with a tax professional. Read more here: https://www.irs.gov/newsroom/irs-home-improvements-could-help-taxpayers-qualify-for-home-energy-credits.