Renovating your home? Please make sure you consider the various energy home fficiency tax credits available to you.
The Inflation Reduction Act of 2022 created several clean energy credits for your home.
The credit amount is equal to 30 percent of the total amount that taxpayers pay during the year for:
- qualified energy efficiency improvements installed during the year,
- residential energy property expenditures, and
- home energy audits.
This week the IRS issued additional guidance on the home energy audit specifically so do be aware when undergoing that service. The maximum credit for home energy audits is $150. So, you can claim a 30 percent credit on audits that cost up to $500. The home energy auditor must provide you a written audit report. This written audit should state that the auditor is certified by one of the certification programs listed on the Department of Energy certification programs for the Energy Efficient Home Improvement Credit page to conduct the home energy audit. The Energy Efficient Home Improvement Credit is a non-refundable credit, meaning that it can only reduce the amount of tax you owe and will not create a refund.
Remember, credits are MORE valuable than deductions!
If you have any questions about these credits or whether you would be eligible to claim any of these credits, please reach out to me.