There are new energy efficiency and renewable tax credits available thanks to the Inflation Reduction Act of 2022. If you’ve been considering making an improvement, this might be the time. Credits are available for purchases made between Jan. 1, 2023, and Dec. 31, 2032.

Let’s look at the energy efficiency credits available

• Air source/ mini-split heat pumps: 16 SEER or greater units are eligible for up to $2,000 in credit (30% of the purchase and installation).
• Central air conditioning: a 16 SEER or greater unit is eligible for a tax credit up to $600 (30% of the purchase and installation).
• Gas furnaces: the unit must have a 97% annual fuel utilization efficiency or greater and is eligible for a tax credit for up to $600 (30% of the purchase and installation).
• Insulation, to include weather stripping, spray foam, air-sealing caulk and house wrap (batts, rolls, blow-in fibers, rigid board, expanding spray or pour in place): elements are available for tax credit up to $1,200 (30% of the purchase and installation).
• Windows and skylights: Energy Star certified models are eligible for a tax credit up to $600 (30% of the purchase and installation).
• Exterior doors: Energy Star- certified doors are eligible for tax credits up to $500, approximately $250 per door (30% of the purchase and installation).

There are also options for clean energy tax credits

• Geothermal heat pumps: units must be Energy Star certified and are eligible for tax credits up to $3,200 (30% of purchase and installation cost.)
• Residential solar: Unit must be located at either primary or secondary home, no rentals, and the system must be net metered for a tax credit of 30% the purchase and installation cost.
• Battery storage: unit must be three kilowatts or greater on non rental property and is eligible for a tax credit of 30% of the cost of purchase and installation.
• Fuel cells: units of a half kilowatt (0.5) or greater with an electricity only generation efficiency of greater than 30% on principal homes only. Units are eligible for tax credits of 30% of the cost of purchase and installation.