December 8, 2022
Passed in August 2022, the Inflation Reduction Act (IRA) was created largely to promote the advancement of renewable energy. One way this is being done is by offering homeowners Energy Efficient Home Improve Credit (EEHIC) tax credits to serve as an incentive for upgrading things like windows, doors, insulation, and air sealing.
Fully unpacking all of the ins and outs of the IRA can, admittedly, be a little tricky due to its length and jargon. So for this post, we’ll highlight the essential details homeowners need to know to capitalize on the EEHIC tax credits scheduled to begin in 2023.
Credits for Installing Exterior Energy Efficient Doors
Under the IRA, you can get an EEHIC tax credit of up to $250 for each exterior door, with a $500 total per taxpayer. Note that some requirements must be met to be eligible for this credit.
- You have to install exterior doors, meaning interior doors don’t apply
- Exterior doors have to meet ENERGY STAR® requirements
- Home improvements must be made after January 1, 2023 and will last until December 31, 2032 (this doesn’t apply to improvements made in 2022)
Credits for Installing Energy Efficient Windows
As for windows, you can get an EEHIC tax credit of up to $600 per taxpayer per year. Like with doors, any windows installed must meet ENERGY STAR® requirements, and the credit can only be applied to home improvements made after January 1, 2023, lasting until December 31, 2032.
It should also be noted that all home improvements must be done in the US by the original homeowner who intends to benefit from the improvement. Also, the improvements have to be done on your principal residence rather than rentals, and you must plan on using the improvements for at least five years.
If you have any questions or would like further elaboration on earning tax credits under the IRA, Wonder Windows will be glad to help. You can reach us through our contact page or call us at one of our two locations.