Beginning in 2023, the Energy Efficient Home Improvement Credit (EEHIC) allows homeowners to claim a tax credit of 30% of the total costs associated with all eligible home improvement projects made during the calendar year. This is a big deal because, while there have been other energy efficiency initiatives in the past, this credit opportunity is more robust than any previously offered.
There are limitations: the total yearly tax credit allowed for windows and doors is capped at $1200 and the individual components have their own credit caps as well. Homeowners can claim exterior window and skylight costs up to $600 and exterior door costs up to $500, with a $250 limit per door. However, there are no income limitations, meaning anyone taking steps to remodel for more energy efficiency can feel the benefits of doing so.
The EEHIC tax credits began on January 1, 2023 and can be taken in the year that remodeling projects are completed or “placed in service.” To find out if you qualify or to find out more information, click through to the FAQ at IRS.gov or consult your local tax advisor for a specific understanding of your possible use of energy tax rebates or credits.
