As part of the Inflation Reduction Act of 2022, you can earn up to 30% tax credit worth up to $600 for making energy efficient home improvements. New windows and skylights qualify for this credit.
This tax credit is effective for products purchased and installed between January 1, 2023, and December 31, 2032.
Under the Inflation Reduction Act of 2022, federal income tax credits for energy efficiency home improvements will be available through 2032. A broad selection of ENERGY STAR certified equipment is eligible for the tax credits. ENERGY STAR products are a smart investment for energy efficiency you can count on. Taking advantage of tax credits, along with any available rebates, is a good way to help make the transition to a clean energy future more affordable. Most of the six elements of an ENERGY STAR Home Upgrade are covered.
What products are eligible?
Exterior windows or skylights must meet the ENERGY STAR Most Efficient criteria.
Annual Limits on Energy Efficient Home Improvement Tax Credits
In addition to limits on the amount of credit you can claim for any particular equipment installation or home improvement, there are annual aggregate limits. The overall total limit for an efficiency tax credit in one year is $3,200. This breaks down to a total limit of $1,200 for any combination of home envelope improvements (windows/doors/skylights, insulation, electrical) plus furnaces, boilers and central air conditioners. Any combination of heat pumps, heat pump water heaters and biomass stoves/boilers are subject to an annual total limit of $2,000. (Note: ENERGY STAR certified geothermal heat pumps are eligible for a separate tax credit and not counted against these limits.)
Who can use this credit?
Principal Residence Owners.
Must be an existing home & your principal residence. New construction and rentals do not apply.
A principal residence is the home where you live most of the time. The home must be in the United States. It can include a house, houseboat, mobile home, cooperative apartment, condominium, and a manufactured home.