The Inflation Reduction Act of 2022 provides substantial increased tax credits for energy efficient home improvements. Beginning on January 1st, 2023, the new law allows for up to $1200 annually vs. the previous lifetime $500 tax credit. Consumers can claim 30% of the sum of amounts paid for qualified energy efficient windows and doors under this program, including:
- exterior doors (30% of costs up to $250 per door, up to a total of $500);
- exterior windows and skylights (30% of costs up to $600); and
- insulation materials or systems and air sealing materials or systems (30% of costs).
This is an amazing incentive to add new energy efficient windows and doors to your home improvement project list in 2023. Not only will you save on heating and cooling bills, but you’ll get an added bonus when it comes time to file your taxes.