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Inflation Reduction Act: The Energy-Efficient Home Improvement Credit

Big light bulb in front of house in meadowThe recently passed Inflation Reduction Act hosts an array of new legislative changes, including the Energy-Efficient Home Improvement Credit. This part of the bill extends credit for home improvements that are geared toward energy efficiency through 2032. The previous credit allotted was 10%, but will now be 30%.         

According to an article from Kiplinger:

“One of the bill's main goals is to address climate change and slow down global warming. And while the legislation primarily helps businesses adopt more eco-friendly measures and jump-start clean energy production, there are incentives for ordinary Americans to go green and save some green, too.

For example, homeowners can cut their tax bill even more if they install new energy-efficient windows, doors, water heaters, furnaces, air conditioners, and the like. That's because the legislation extends and enhances two tax credits that reward ‘green’ upgrades to your home.”

How The Inflation Reduction Act Might Change Your Choice in New Windows & Doors

When 2021 came to an end, so did the Nonbusiness Energy Property Credit which many homeowners are familiar with. But, with the passing of the Inflation Reduction Act, it has been revived, improved, and is now known as the Energy-Efficient Home Improvement Credit. 

Under the Nonbusiness Energy Property Credit, you could only attain a 10% credit on the installation of certain energy-efficient installations and improvements to your home, such as your windows and doors. And the lifetime limit was up to $500 for the credit and a $200 lifetime limit for new windows which was quite restricting. 

Per the Inflation Reduction Act, beginning in 2023, the credit will now be equivalent to 30% of the costs for qualifying home improvements made throughout the year. The $500 lifetime limit has also been increased to a $1,200 annual limit on the credit amount. 

Keep in mind that some of the energy-efficient standards have been updated and the annual limits for qualifying improvements have also been modified for 2023 including $250 for an exterior door and $600 for exterior windows, skylights, and more. 

Looking for Qualifying Energy-Efficient Windows or Doors?

If you have been contemplating upgrading your windows and doors to improve your home’s energy efficiency, aesthetics, comfort, and security, then this bill will make them even more affordable. 

There are several energy-efficient window and door styles that can qualify. At Eastern Architectural Systems, our vinyl, Energy Star solutions are ideal installations for your home and qualify for the Energy-Efficient Home Improvement Tax Credit.

Click the button below to shop our energy-efficient solutions or click here to locate the nearest Eastern Architectural Systems window and door dealer to you.

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