Did you know the U.S. government hopes to help homes become more energy efficient over the next few years? Tap or click here for tools showing how much you can expect to spend on home improvements.
The Inflation Reduction Act (IRA), signed into law by President Biden, is slated to help make that happen. Beginning in 2023, small businesses, families, and individuals will be able to capitalize on clean energy tax credits. What does this mean for you? A lot.
One exciting prospect of this law is tax credits for anybody working toward a greener, more eco-friendly home. Solar panels, better HVAC, energy-efficient water heaters and more are all on the table. Here’s how to find out how much you can save.
How to check your Energy Efficient Home Improvement Credit eligibility
Homeowners should check out what was formerly IRC Section 25C, now called the Energy Efficient Home Improvement Credit. This section of the law expired for individual, non-commercial entities in 2021. Now, though, the provision is being extended, going back into effect in 2023. What can you expect to get through this program?
The tax credit is valid for 10% of the cost of a slew of home improvement projects. These include a new, energy-efficient roof, for example, or an eco-friendly power system may all be eligible.
Other home systems might be covered entirely, depending on your circumstances. You might be in luck if you need a new central air system, furnace, water heater, or other air quality device.
Check out Rewiring America’s IRA calculator for a complete breakdown of every tax credit, discount, and rebate you may be entitled to. This tool allows you to plan for when this act becomes active.
To see what you can save, plug in your household info and hit the yellow Calculate! Button. You’ll enter your ZIP code, homeowner status, household income, tax filing status and household size.
After doing so, you’ll receive an estimate, breaking down your potential savings into upfront discounts, tax credits, and even the amount of money you stand to save yearly on your utilities after making these home improvements a reality. It’ll look something like this:
Exciting? Extremely. Although you won’t be able to claim and redeem these incentives until 2023, you can still gather documents and apply throughout the rest of 2022.
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