Your home improvements could now come with a larger tax credit.
By: Collin Miller
Harvest Point Wealth Management
Great news for homeowners! If you're planning to make energy-efficient improvements to your home, you may be eligible for a tax credit of up to $3,200. More details below.
- No lifetime dollar limit for this credit. You can claim the maximum annual credit each year for eligible improvements until 2033.
- Applies to qualified improvements made after January 1, 2023
- Starting January 1, 2023, the credit amounts to 30% of certain qualified expenses, including: qualified energy efficiency improvements installed during the year, residential energy property expenses, and home energy audits.
Each year, you can claim the following maximum credit amounts:
- $1,200 for energy property costs and certain energy-efficient home improvements, subject to limits on doors ($250 per door, $500 total), windows ($600), and home energy audits ($150).
- $2,000 per year for qualified heat pumps, biomass stoves, or biomass boilers.
Source: IRS
While the tax or legal information provided is based on our understanding of current laws, and has been gathered from sources believed to be reliable, it cannot be guaranteed. Federal tax laws are complex and subject to change. Neither LPL Financial, nor its registered representatives, provide tax or legal advice. Always consult a qualified tax advisor for information as to how taxes may affect your particular situation.