Beginning January 1, 2023 the Inflation Reduction Act of 2022 amends the Nonbusiness Energy Property Credit from a lifetime credit of only $500 to an annual credit of up to $1,200 per year. The credit is equal to 30% of the cost for qualified energy-efficient improvements installed during the year.
Credit amounts are limited to:
• Any qualified energy property—$600
• Windows and skylights—$600
• Exterior doors—$250 and $500 in aggregate
• Heat pump and heat pump water heaters, biomass stoves, and boilers—$2,000
Identification numbers will be required, with respect to specified property items placed in service after 2024.
An additional credit amount of $150 is available for a home energy audit.
Planning to make improvements to your home this year?
Be sure to check the energy efficiency of those improvements and don’t overlook the credit when tax time rolls around.