Kansas homeowners that are eyeing new energy-efficient upgrades to your home can save even more under the newly implemented Inflation Reduction Act. If this sounds familiar, it is. The Nonbusiness Energy Property Credit expired at the end of 2021. However, the Inflation Reduction Act brings it back to life, improves some aspects of the bill and gives it a new name – the Energy Efficient Home Improvement Credit.
The previous, expired credit was worth 10% of the costs of installing certain energy-efficient windows, doors and other similar energy-saving improvements in your home. However, there was a lifetime limit of $500 for the credit and a lifetime limit of $200 for new windows. These limits restricted the overall value of the credit.
The credit will be revived for the 2022 tax year with previous rules in place. However, starting in 2023, the credit will be equal to 30% of the costs for all eligible home improvements made during the year. The previous $500 lifetime limit will be replaced by a $1,200 annual limit on the credit amount. The $200 limit on windows goes away and is counted toward the $1,200 annual limit, as well. This means that every year, you can cash in on tax credits for qualifying home upgrades.
If you’re ready to upgrade your windows and doors to energy-efficient options, you can cash in on the 2022 revived plan while it is still available. Or you can get on our books now for 2023 to leverage the 2023 Energy Efficient Home Improvement credit to help increase the efficiency of your Central Kansas home and cash in on the $1,200 window replacement credit.
MPIRE Improvements is a Pella Platinum Certified contractor bringing Central Kansas high-efficiency windows, doors and garage door options. We serve Central Kansas and are headquartered out of Great Bend, Kansas.
