Specific improvements to existing homes that qualify for the Energy Efficient Home Improvement Credit as of 2023 include the following:
- Qualified energy efficiency improvements such as:
- Exterior doors (credit limit of $250 per door, $500 total)
- Exterior windows and skylights (credit limit of $600 total)
- Home energy audits (credit limit of $150)
- Residential energy property, including:
- Qualified heat pumps
- Qualified water heaters
- Biomass stoves or biomass boilers
The credit covers 30% of the qualified expenses related to these improvements, and the maximum annual credit limits are:
- Up to $1,200 for energy-efficient property costs and certain home improvements (with specified limits on doors, windows, and audits)
- Up to $2,000 per year for qualified heat pumps, water heaters, biomass stoves, or biomass boilers
This credit applies to improvements made and property placed in service from January 1, 2023, through December 31, 2032. It can be claimed annually with no lifetime dollar limit, but starting in 2025, qualifying property must be produced by a qualified manufacturer and have a Product Identification Number (PIN) reported on the tax return to qualify.
In summary, existing homes qualify for tax credits when owners make energy-efficient improvements such as installing efficient doors, windows, skylights, heat pumps, water heaters, biomass stoves, or having a home energy audit done, subject to annual credit limits and manufacturer requirements.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/what-specific-improvements-qualify-for-the-tax-credit-in-existing-homes/
