Inflation Reduction Act (IRA) Federal tax credits and rebates are available for energy efficiency upgrades to your main home. If you’ve upgraded appliances or made home weatherization improvements to your primary residence since 2023, you may be eligible for tax credits or rebates for energy-efficient improvements.
Here’s a sampling of what’s covered: upgraded exterior windows and doors, insulation high-efficiency (Energy Star-rated) heat pumps, water heaters, heating and cooling equipment, appliances, electric panel upgrade, and switching to an electric vehicle or adding a home charger.
More Money, More Comfort
So, how does it work? Federal tax credits of up to $3,200 per year can be claimed with your federal income taxes for the year when the upgrades are made. Just complete IRS Form 5695, follow IRS instructions, and include the form when filing your tax return. You’ll need to know the total cost of the upgrades and include relevant receipts. Given how annual total limits are structured, consider spreading your home energy efficiency improvements over a few years. Planning your upgrades can help maximize the annual credit amounts you can claim. As with any tax matter, consulting with a tax professional is advisable.
Energy-efficient upgrades typically reduce consumption, lower utility bills over time and lessen the environmental impact. Not to mention, you can say adios to drafts and cold spots with energy-efficient windows and doors, and hello to improved indoor air quality with cleaner heating and cooling systems. So, what are you waiting for?