GREENSBORO, N.C. — 2023. What did you do this year? Maybe you went on a trip or started a new hobby, or maybe this was the year you had to replace you’re A/C or heating unit. That can do a number on your bank account, but it could also help with your taxes.
If you bought an energy-efficient door, window, or A/C unit, you could claim more on your taxes than ever before.
“For quite some time, there's been a lifetime limit of $500 for energy credits, A/C and heating units, doors, and windows, but the Inflation Reduction Act of last year changed that from a $500 lifetime limit to basically up to a $3,200 annual limit,” said Kevin Robinson, Robinson Accounting and Tax Services.
The Energy Efficient Home Improvement Credit was expanded.
Starting in 2023, make a qualified Energy Efficient improvement to your home and you can get the tax credit. It’s not just the amount that is expanded, this is good until 2032. So, if not this year, cash in one year in the future.
You can claim a credit for 30% of the expenses, which includes the labor of putting in the doors, windows, or A/C unit you bought.
"Energystar.gov is a great website to tell what qualifies and if I bought a new heating system, I would hold on to the paperwork from the vendor for tax purposes," said Robinson.
If you're thinking of doing home improvements this year, or next year, before you make any improvements stop and look at the list of which products qualify.