US President Joe Biden signed the big climate bill – the Inflation Reduction Act (IRA) – earlier this week. Electrek spoke with Dan Gayer, JD, CPA, a senior manager in the tax practice at Baker Newman Noyes, about how homeowners can claim tax credits and rebates as they work to achieve energy efficiency and lower their energy bills.
Energy Efficient Home Improvement Credit
Changes to the former Nonbusiness Energy Property credit, now renamed the Energy Efficient Home Improvement Credit, will take effect on January 1, 2023.
The old credit was worth 10% of the costs of installing insulation, windows, doors, roofing, and other energy-saving improvements. The old $500 lifetime limitation still applies for the rest of 2022.
From 2023, a $1,200 annual tax credit limit will replace the old $500 lifetime limit. The tax credit will be equal to 30% of the costs for all eligible…