Energy Efficient Home
If you’re familiar with the Nonbusiness Energy Property Credit that ended in 2021, you may already be aware of the tax credits homeowners can claim on certain purchases. This has a similar role with new and improved initiatives. Essentially, you’ll be able to reduce your tax bill when you make energy-efficient upgrades to your home and appliances.
When you purchase upgrades on energy-saving installations like insulation, windows, doors, and other building changes, you can claim 30% of the cost starting in 2023. The previous credit system (the Nonbusiness Energy Property Credit) had a $500 lifetime limit; this has been replaced by a $1,200 annual limit with various annual limits changes for certain types of qualifying improvements.