The Inflation Reduction Act (IRA), signed into law by President Joe Biden, is a legislative collection of documents designed to diminish climate change, reduce the federal deficit, lower costs for families, and raise taxes on large corporations.
While taxes and healthcare are important, the renewable energy sector is poised for growth through homeowners looking to remodel or improve their space. Home improvement and remodeling industries will see specific clean and renewable energy tax provisions as outlined by the IRA for the next ten or more years.
Energy-Efficient Home Improvement Credit
The Nonbusiness Energy Property Credit (NEPC), which expired at the end of 2021, will be revitalized and renamed the Energy-Efficient Home Improvement Credit (EEHIC). The EEHIC will offer homeowners higher tax incentives for qualifying home improvements, including energy-efficient appliances, insulation, windows, doors, roofing, etc. The credit will be up to 30 percent of all eligible home improvement costs made during the year, with a $1,200 annual limit.
After 2024, EEHIC credits will only be allowed if the product manufacturer creates a specialized identification code, which the taxpayer claims by using that code on their federal tax return.
Residential Clean Energy Credit
Another revitalized tax credit under the IRA is the Residential Energy Efficient Property Credit (REEPC), now renamed the Residential Clean Energy Credit (RCEC). The RCEC gives a 30 percent credit for installing qualifying green-energy systems such as solar, wind, geothermal, biomass, or fuel cell power for heat, air conditioning, electricity, and more.
High-Efficiency Electric Home Rebates
The IRA offers a High-Efficiency Electric Home Rebate Program aimed at lower- and middle-income families. Potential buyers who make 80 percent or less of their area’s residential median income can qualify for a wide range of tax rebates for water heaters, area heating or cooling, stove tops, breaker box upgrades, insulation, electric wiring, etc. A few stipulations do exist, though, which include the percentage ratio between the cost and the family’s income, the total amount of rebates, and more.
Are you looking to update your home or office to be more environmentally friendly and energy efficient? Call JFC remodeling to help lower your carbon footprint.
JFC Remodeling is committed to providing top-quality home reconstruction services to clients throughout Livingston County. With over 30 years of experience in the industry, our licensed contractors create unique, individualized, and polished renovations. Whether the site requires an improvement, repair, or is a new construction, you can trust our experts to deliver remarkable results. Call or email us to learn more.
Written by the digital marketing team at Creative Programs & Systems: https://www.cpsmi.com/