The recently passed Inflation Reduction Act rewards households that take steps to improve home weatherization and the energy efficiency of their homes with the ability to reap more generous financial benefits through tax credits and rebates as well as through the additional long-term benefit of lowering electricity and heating bills. The act itself is a lengthy read so we took it upon ourselves here at Comfort to have reviewed it for you. We have condensed the information into the most important details relating to the tax credits available to homeowners in Upstate New York, focusing on making energy-efficient upgrades to their homes starting in 2023.
What Is The Energy Efficient Home Improvement Credit?
Formerly the Nonbusiness Energy Property Credit, the Energy Efficient Home Improvement Credit is part of the Inflation Reduction Act and covers a wide range of energy-efficiency home improvements. The information provided below focuses on how homeowners can benefit by using this tax credit towards upgrading to new energy-efficient windows and exterior doors. According to the Whitehouse.gov and the ENERGY STAR® website, the available tax credit is equal to 30% of what is spent on “Qualified Energy Efficiency Improvements”. Below are the annual caps that apply for each:
- Installed Energy Efficient Windows: Tax credit of $600 per taxpayer per year.
- Installed New Exterior Doors: Tax credit of $250 per door for up to 2 doors, for a total tax credit of $500 per taxpayer per year.
Here Are The Qualifications:
- The available tax credit is equal to