Do you wish you could get some kind of credit for the energy efficient home improvements being made to your home? The good news is that this is a possibility, thanks in part to the Inflation Reduction Act of 2022, which allows Americans to claim tax credits for qualifying energy-efficient home improvements. This is known as the energy efficient home improvement credit.
Residential properties that meet the criteria for this credit can receive up to $1,200 a year between 2023 and 2033. Experts say that if you are strategic enough, you can receive up to $12,000 in tax refunds over the course of ten years for these improvements. In other words, you can pay less taxes if you make certain energy efficient upgrades to your home. If you want to qualify for an energy efficient home improvement credit, keep reading this blog to learn how to do so.
6 Ways To Qualify For An Energy Efficient Home Improvement Credit
As you explore these different ways to qualify for an energy efficient home improvement credit, please keep in mind that these are suggestions. After reading this blog, consult someone who is well-versed in tax law before implementing any of these changes. Also, remember that these are just a few of the many ways to qualify for this tax credit.
1. Solar Energy Sources
Solar energy is a great way to start making your home more energy efficient. You probably think that solar energy is only limited to being able to provide electricity, but it can do more. Installing solar panels can also allow you to heat up your water supply in a more energy-efficient manner than a traditional gas heater or boiler. Of course, solar isn’t the only route to efficiently keeping your water supply well-heated.
2. Geothermal Heat Pumps
Geothermal heat pumps are growing in popularity for residential properties. These heat pumps collect energy from underground to heat up a home’s water supply or even the whole property. Upgrading to this kind of appliance can save you up to 30% in taxes.
3. Biomass Stoves
Another way to keep your home’s water supply and your home heated up is to install a biomass stove, a boiler system that burns biomass as a source of fuel. Sources of biomass include, but are not limited to, wood, plants, agricultural crops, and other natural sources of waste.
3. Wind Turbines
You’re probably familiar with wind farms that use large turbines to generate electricity and energy. Depending on the state of your property, you might be able to install small wind turbines to implement wind as an alternative energy source for your home.
4. Windows, Skylights, And Doors
If you’re intimidated by the qualifying improvements discussed so far, don’t worry. There are less daunting ways to earn the energy efficient home improvement credit that don’t involve completely changing your home’s energy source. One of these ways is to install energy-efficient windows, skylights, and exterior doors. While the credit won’t be as big, these changes will still make an incredible difference to your lifestyle and your taxes.
5. Insulation Material
Another more simple way to qualify for an energy efficient home improvement credit is to upgrade your home’s insulation material. Even weatherstripping is categorized as insulation for earning this tax credit. Whether you switch to spray foam garage door insulation or add weatherstripping to your home’s entry points, this is a very good way to increase your property’s energy efficiency.
BetterBuilt Builders Will Make These Energy Efficient Home Improvements Happen!
We hope this blog serves as a good launching point for you to start earning that energy efficient home improvement tax credit. To really ensure that you qualify, consult a tax advisor about what changes make the most sense and the necessary documentation. As for bringing these changes into your home, there’s no better team than ours at BetterBuilt Builders. Contact us today and begin living a more energy efficient life.