The Inflation Reduction Act extends and expands tax credits for making your home more energy efficient.

These include

a healthy 30 percent credit for installing home solar panels (retroactive for 2022);

credits for installing energy-efficient windows, doors, and insulation; and

even a credit for installing a home electric vehicle charger (but oddly, only if you live in a low-income or rural area).

Energy Efficient Home Improvement Credit

The new law renamed the old Non-Business Energy Property Credit as the Energy Efficient Home Improvement Credit and greatly expanded it starting in 2023.

The old credit, which exists until the end of the year, contains a tiny $500 lifetime cap (yes, lifetime).

Good news. Beginning in 2023, lifetime caps are gone. Instead, there is a $1,200 overall annual cap on the new credit, along with annual caps for certain types of improvements. This means you can perform energy efficiency projects over several years and collect the credit each year. ... Log in to view full article.