Improving a home’s energy efficiency has always been a solid money-saving idea, and a slew of super-sized US tax credits that take effect this year will help many taxpayers with the initial costs.
In 2022 there was a $500 lifetime limit on the federal energy efficient home improvement credit. Now, it’s worth up to $1,200 yearly.
As before, it’s what’s known as a non-refundable tax credit. That means it can be used to reduce the federal income tax one owes, but if the credit is worth more than the tax owed you don’t get a check for the difference. So,