Tax time approaches—get ready to take advantage of energy efficiency tax credits!
It’s February already, which means April 15th is just around the corner. Don’t forget to claim the upgrades you made last year when you file your 2023 tax return! If you made energy efficiency upgrades like installing solar, insulation, rewiring, or a heat pump, you are very likely eligible for tax credits (a reduction in your tax bill). Following are some helpful tips for making the most of the IRA’s energy efficiency tax credits, but please consult with your tax professional for details.
- If you made energy efficiency upgrades to your home in 2023, claim them on your federal tax return using Form 5695. Again, we recommend consulting with your tax professional for details.
- Save your receipts! You’ll need to submit a receipt or invoice for each of the upgrades you made along with your tax return. The contractor who installed your efficiency upgrades should be a helpful resource for getting the necessary paperwork ready for tax time.
- Make a game plan for the yearly total tax credit limits. Qualifying home upgrades are subject to maximum yearly tax credits, with separate limits for different groups of items. Group 1 allows up to $1,200 annually for energy-efficient improvements like insulation and exterior doors, while Group 2 permits $2,000 yearly for items such as heat pump systems. Group 3 offers a tax credit of 30% of the cost with no limit, covering installations like rooftop solar. Plan ahead! By strategically spreading out upgrades over the IRA’s 10-year lifespan, homeowners can potentially receive up to $12,000 in tax credits.
- See if your EV is eligible for a tax credit. If you bought an EV in 2023, that’s awesome! The eligibility for the IRA’s EV Tax Credits changed last year, so check out fueleconomy.gov to see if your EV qualifies. There are tax credits for new and used EVs as well as installation of home EV chargers.
Read the full blog post for more details
Congrats to our latest certified home!
Congrats to our latest certified household! After their old boiler broke, they were excited to replace it with a heat pump. They also have a 10kw rooftop solar and battery backup. They are now 100% electric and powered with renewable energy! Welcome to the ElectrifyPDX community, Bill!
A new helpful electrification tool: Rewiring America’s Personal Electrification Planner
Rewiring America has just launched their new Personal Electrification Planner, a free helpful tool for renters and homeowners that provides you with tips, info on tax rebates and incentives, and a customized electrification plan. Try it out, and let us know what you think!