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Home Improvements That May Qualify for ENERGY STAR® Tax Credits

In the pursuit of a greener and more cost-effective home, the Inflation Reduction Act of 2022 extends a lifeline to homeowners by providing federal income tax credits for energy-efficient home improvements until 2032. While eligibility is not guaranteed, investing in ENERGY STAR®-certified products is a smart move. Certain products may offer a pathway to potential tax credits and a more sustainable living space. Here’s a breakdown of home improvements that may qualify:

1. Upgrade Your HVAC System

Upgrading to an ENERGY STAR-certified heating and cooling system may qualify you for tax credits. Products include air source heat pumpscentral air conditionersboilersbiomass fuel stoves and natural gas, oil or propane furnaces. Upgrading your heating and cooling system can help improve indoor comfort while contributing to a more energy-efficient home.

2. Replace Your Water Heater

Consider replacing your water heater with an ENERGY STAR-certified model. You could improve the efficiency of your hot water supply and may also qualify for valuable tax credits.

3. Increase Insulation

Enhance your home’s energy efficiency by increasing insulation in critical areas. Typical bulk insulation products, like batts, rolls, blow-in fibers, rigid boards, expanding spray and pour-in-place, may qualify for tax credits. While tax credits are not guaranteed, investing in quality insulation can improve your energy efficiency and help save you money on utility bills.

4. Install New Windows

Investing in ENERGY STAR-certified building products such as windows may qualify for tax credits. Alside ClimaTech PriME glass packages, known for their energy efficiency, are an excellent choice for upgrading your windows and enhancing insulation. ClimaTech PriME is available for Mezzo® and Fairfield 80 Series Windows and Promenade® Sliding Patio Doors.

Before diving into broader energy-efficient upgrades, consider a home audit to provide insights into necessary improvements that may qualify for tax credits.

Photo Credit: Green Tech Construction and D Taylor Raymond