Tax Credits for Energy-Efficient Homes: Increased Returns, Extended Period
This act increases tax credits for individuals investing in energy-efficient home improvements like new windows, doors, or heating systems. Citizens can now recover more money from their taxes, reducing modernization costs and helping save on energy bills. These changes are effective from 2022 and will last until the end of 2028.
Key points
Increase in tax credit from 10% to 15% of qualified energy-efficient improvement costs.
Maximum credit amount rises from $500 to $1,200 annually.
New limits introduced for specific improvements, e.g., up to $600 for windows meeting highest Energy Star standards, up to $200 for other Energy Star windows, up to $500 for doors (max $250 per exterior door).
Expansion of eligible improvements to include labor costs for installation and new types of insulation materials and heating systems.
Extension of the tax credit program until December 31, 2028.
Requirement for installation to comply with Air Conditioning Contractors of America (ACCA) Quality Installation standards for eligible components.
Expired
Additional Information
Print number: 117_S_1753
Sponsor: Sen. Hassan, Margaret Wood [D-NH]
Process start date: 2021-05-20