Please Note: These newsletters are published four times a year. Articles within them can ‘age’ or even become obsolete in the course of the quarter. For the most up to date tax law information, please read the 2015 Welcome Back Letter , my Blog or contact the office with any questions.
Expanded Home Energy Credits Available for 2023
If you boost your home’s energy efficiency, or shift your home to renewable energy sources in 2023, you may qualify for special federal tax credits in 2023. The Inflation Reduction Act of 2022 expanded the tax credits available this year for residential energy efficiency improvements. Eligible homeowners may be able to claim a credit of up to the 30% of the cost of efficiency upgrades like:
- Energy-efficient doors, windows and skylights, as well as new insulation or air sealing
- More efficient air conditioners, water heaters, furnaces or boilers
- Heat pumps
- Biomass stoves or boilers
- Home energy audits by certified inspectors
Credits for biomass appliances and heat pumps could be as high as $2,000, while a maximum credit amount of $1,200 applies for most other energy efficiency improvements. Installations must meet certain criteria in order to qualify for the credits. In addition to these tax savings, well-chosen efficiency upgrades can significantly reduce utility costs. A home energy expert can help you find opportunities to reduce your energy use, while a tax professional can help you maximize the tax benefits of making those improvements.