There has never been a better time to make your home more energy efficient. The Inflation Reduction Act, signed into law last year, is a game changer for homeowners looking to make green home improvements and save money on utility bills. "It's a monumental piece of tax legislation" that's packed with tax credits and deductions, says Mark Steber, chief tax officer at Jackson Hewitt.
At the same time, the new law has "a lot for homeowners to parse through, and there are a lot of nuances for what qualifies and what doesn't qualify for a tax break," Steber says.
If you're thinking of purchasing an energy-efficient appliance or system, here's what you need to know to squeeze the most savings out of the Inflation Reduction Act, along with tips on four common green home-improvement projects.
SAY FAREWELL TO LIFETIME LIMITS
Until the end of 2021, homeowners could claim a credit for up to 10% of the cost of installing certain energy-efficient insulation, windows, doors, roofing and other home improvements. But the credit was capped at a modest lifetime limit of $500, with a $ 300-lifetime limit for windows.
That's no longer the case. The Inflation Reduction Act's Energy Efficient Home Improvement Credit lets homeowners-no matter their income-claim a tax credit for up to 30% of the cost of qualifying home improvements, up to $1,200 per year. (A credit is a dollar-for-dollar reduction in your tax bill.)
However, there are annual dollar limits for certain items:
هذه القصة مأخوذة من طبعة June 2023 من Kiplinger's Personal Finance.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 8500 مجلة وصحيفة.
بالفعل مشترك ? تسجيل الدخول
هذه القصة مأخوذة من طبعة June 2023 من Kiplinger's Personal Finance.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 8500 مجلة وصحيفة.
بالفعل مشترك? تسجيل الدخول
Your Vacation Home Could Provide Tax-free Income
If you plan to rent out your vacation home, it's important to understand how your proceeds will be taxed.
A SOLID YEAR FOR THE KIPLINGER 25
All but one of our favorite actively managed, no-load mutual funds gained ground as markets recovered.
IT'S NOT YOUR IMAGINATION: YOUR CEREAL BOX IS SHRINKING
To avoid raising prices, some manufacturers are reducing the size of common grocery items. Here’s how to fight back.
SHOULD YOU WORRY ABOUT BEING LAID OFF? IT DEPENDS ON YOUR INDUSTRY
Downsizing has hit certain sectors. But cutbacks may be slowing, and some companies are expanding.
How identity thieves are exploiting your trust
Con artists themselves are disguising as well-known brands to steal your money and personal information.
CUT THE COST OF YOUR WIRELESS BILL
AT&T, T-Mobile and Verizon dominate the market, but smaller outfits offer similar network coverage at lower prices.
MAKING HOME ENERGY MORE AFFORDABLE
Households in need can get energy-efficiency upgrades, help with utility bills and more from this nonprofit.
A HEAD START FOR SAVERS
The Saver's Credit is designed to help low- and middleincome taxpayers contribute to a retirement account.
Say I Love You With a Money Date
To nurture a lasting bond with your partner, meet regularly to talk about money.
Plan for Your Own Elder Care
AFTER I wrote a series of columns in 2022 about elder care planning for family members, I received a number of responses like this one: “What about married couples who have no children or whose family members don’t live nearby?” wrote one reader. “Or a single individual with no close relatives? How should these people plan for their own elder care?”