Washington News
In IR-2024-137 the Internal Revenue Service (IRS) encouraged taxpayers to make updates to their home to qualify for home energy credits. The credits were significantly expanded by the Inflation Reduction Act of 2022.
Most of the credits apply to homeowners, but renters may also be eligible for some credits. The credits are generally in two main categories. There are credits for energy-efficient improvements to your home after January 1, 2023. Other credits apply to improvements such as solar panels, wind turbines or battery storage.
Home Energy Improvements — Qualified home improvements made after January 1, 2023, may produce a 30% credit, with a maximum amount of $3,200. These improvements include qualified doors, efficient windows and skylights. Upgraded insulation and efficient water heaters, furnaces and heat pumps may also qualify. The maximum credit per year is $1,200 for home improvements, with a limit of $250 per door (with a maximum of $500) or $600 for windows. The limit for a heat pump, biomass stove or boiler is $2,000 per year. This credit is not refundable and...
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