Green Your Home and Your Tax Bill in 2023
Tax deductions and credits are always changing, and 2023 is no different. After the Tax Cuts and Jobs Act of 2018 streamlined some tax benefits, many pandemic-era relief programs have ended. But don't worry – there are still ways to save on your 2023 taxes, especially if you're focused on energy efficiency.
Go Green, Save Green
One big opportunity is the expanded credit for buying an electric vehicle (more on that coming soon!). Here's what else could lower your tax bill in 2023:
Energy-Efficient Home Upgrades: Got drafty windows or an ancient furnace? You could get credits totaling up to $3,200 annually for green improvements to your primary residence – that's way up from the old $500 lifetime limit.
Solar and Clean Energy Power: Harness the sun, wind, or geothermal energy? The credit for installing these systems is a generous 30% of costs, and it won't decrease until 2033.
Key Points to Note
Many pandemic-related deductions are gone for individuals.
Credits for specific items have caps. For example, you can get up to $600 for new windows.
IRS Links for Further Information:
Credits and Deductions for Individuals: https://www.irs.gov/credits-and-deductions-for-individuals
Energy Efficient Home Improvements (specifically the Residential Energy Credits): https://www.irs.gov/newsroom/energy-incentives-for-individuals-residential-property-updated-questions-and-answers
Inflation Reduction Act of 2022: https://www.irs.gov/inflation-reduction-act-of-2022 (This page will likely have more comprehensive information as it's updated)
Need more tax tips? Stay tuned for our upcoming piece on the electric vehicle tax credit!
