Home improvement projects and energy upgrades are a great way to save money. A variety of tax incentives or credits are available to help you save even more. The Inflation Reduction Act of 2022 provides expanded federal income tax credits for energy efficiency home improvements.
Among the qualifying upgrades are:
- Geothermal
- Certain heat pumps and heat pump water heaters
- New electric breaker panels and updated wiring
- Weatherization, including insulation, new doors and windows
- New and used electric vehicles and EV chargers
These projects may be eligible for tax credits based on the year they were placed in service. Some restrictions and annual caps may apply. Also keep in mind that tax credit amounts may decrease from year to year.
JCE encourages you to talk with your tax professional about available credits and tax deductions when planning your energy-efficiency upgrades. You can learn more about these federal tax credits by visiting the energy savings hub created by the U.S. Department of Energy. Also helpful is the IRS site on credits and deductions under the Inflation Reduction Act.
JCE members can also take advantage of the co-op's variety of energy efficiency incentives.