The Inflation Reduction Act of 2022 provides nearly $400 billion to fund energy and climate projects to reduce carbon emissions by 40 percent by the year 2030. It offers clean energy incentives of energy efficient products for homeowners who can use this tax credit towards solar panels and also by upgrading to new energy-efficient windows and exterior doors.
The annual maximum amount for each is as follows:
- Windows: Tax credit of $600/year per taxpayer.
- Doors: Tax credit of $250 per door (total credit of $500/year per taxpayer).
- Solar Panels: No maximum.
Qualifications and Requirements:
- The replacement must be used by the original homeowner and must be the principal place of residence.
- Homeowners must use the improvement for a minimum of 5 years.
- The available tax credit is 30% of the total cost of solar installation and 30% of windows and doors replaced (labor excluded).
- Replacement windows and exterior doors must meet ENERGY STAR requirements.
- The installation must be made from January 1, 2023 through December 31, 2032.
Energy efficiency can save homeowners and renters hundreds of dollars per year by eliminating cracks and gaps in exterior windows and patio doors. Keep cooling and heating costs down by upgrading to new vinyl replacements.
Take advantage of the Inflation Reduction Act of 2022 before it expires. Call, text, or message us to get started. We can guide you through the entire process from start to finish! Quotes are always free!
For more information, please consult a tax advisor and visit The White House and Energy Star for details.