TAX TIP: Energy Efficient Home Improvement Credit

Homeowners can benefit from the Energy Efficient Home Improvement Credit, available from 2023 to 2032, to offset costs of energy-efficient upgrades to their primary residence. To qualify, the home must be existing and located in the U.S. Eligible improvements include central air conditioners, heat pumps, and solar panels, with a maximum annual credit of $1,200, or $2,000 for specific items. Careful planning and staggering upgrades over the years can maximize benefits, as the credit is nonrefundable and should align with tax liability.