Are you looking for ways to save on your energy bills? Upgrading your appliances is one of the best ways to do so. In 2023, you can take advantage of a 30% tax credit when you upgrade to more efficient models. This includes water heaters, air conditioners, and certain stoves. You can apply for the credit for energy-efficient home improvements or the credit for clean properties with residential energy for the year in which you make the qualifying improvements.
Heat pumps, heat pump water heaters, insulation, doors and windows, electrical panels, home energy audits and more are all covered by tax credits. This can help families save money on their monthly energy bills for years to come. To qualify for the tax credit, you must meet certain criteria. The improvements must be made to an existing home that is your primary residence. The improvements must also be made between January 1, 2021 and December 31, 2023. Additionally, the improvements must meet certain energy efficiency requirements. The tax credit is available for both existing homes and new construction.
For existing homes, the improvements must meet or exceed certain energy efficiency requirements set by the Department of Energy. For new construction, the home must meet or exceed the standards set by the International Energy Conservation Code. The tax credit is available for both homeowners and renters. Homeowners can claim up to $500 in tax credits for energy-efficient home improvements. Renters can claim up to $200 in tax credits for energy-efficient home improvements. The tax credit is also available for businesses that make energy-efficient improvements to their buildings.
Businesses can claim up to $1,000 in tax credits for energy-efficient building improvements. If you're looking to save money on your energy bills in 2023, consider taking advantage of the energy tax credit. Upgrading your appliances and making other energy-efficient improvements can help you save money on your monthly bills and qualify you for a 30% tax credit.