Did you know you can receive tax breaks for home improvements? Many homeowners think home improvements are recouped through resale only, but that is not the case.
When the U.S. Congress passed the “Inflation Reduction Act,” or IRA, one goal was to encourage Americans to help in the fight against climate change. With the IRA, homeowners are set to receive tax breaks for home improvements on energy-saving upgrades that contribute to a “greener” environment. It’s an incentive for homeowners to invest in greener building materials as they make their home improvement plans. Depending on the project, the tax breaks for home improvements can even drastically offset (or possibly cover) the entire cost of a home improvement.
Pro-Home Services is conscious of contributing to the efforts to reduce climate change. We partner with building materials manufacturers whose values align with ours and therefore, can help homeowners qualify for government incentives with these energy-efficient home improvements. Consider these projects to take advantage of federal and state tax breaks for home improvement:
Solar roofing harnesses energy from the sun and converts it into clean energy to heat or cool homes, charge phones, power appliances, etc. The IRA issues a 26 to 30 percent tax credit for installing and using solar panels. The credit will expire by 2034 unless Congress extends it. A credit will save you more than $7500 for the installation of an average system. As a bonus, Illinois enacted its own incentives for greener energy. By switching to solar panels, homeowners qualify for the net metering law. This law is designed to give money back to the homeowner by reducing the average energy bill. For example, from $.28 kWh (kilowatt hour) to $.06 kWh.
Windows and Doors
Drafty windows and doors are a major culprit in energy loss. Poorly installed or aging doors and windows are likely have gaps or cracks that rob your home of heat. If your furnace/air conditioner is constantly running, you likely have a draft from the door or windows. It may be time to upgrade your windows and doors and receive tax breaks for home improvements at the same time. Aside from keeping your home comfortable, you can receive up to a 30 percent tax credit on your replacement windows. What does that mean for you? A homeowner will save up to $1,200 annually or more specifically, $600 for windows and $500 for doors. Pro-Home Services offers an array of options when it comes to windows and doors, featuring trusted brands like Andersen, Alside, and more.
A cool roof, or light-colored roof, is designed to reflect sunlight and absorb less energy. The cool roof will keep the structure underneath at a lower temperature, reducing air conditioner usage. Qualifying for a tax break on home improvement for your cool roof may be tricky when installing a cooler roof. However, regardless of whether or not you earn money back, you will still reap the benefit of whole-house energy savings.
Pro-Homes also carries shingles from manufacturers who are concerned with air quality and energy efficiency. For example, the Malarkey anti-smog shingles actually reduce pollution and GAF and Owens Corning shingles are designed to keep attics well insulated in the coldest and hottest months. GAF is also leading the way in producing shingles made from recycled materials.
2023 is a great year to plan a greener home and receive a tax break for home improvement at the same time. Don’t forget that by doing so you’ll also increase your home’s resale value, add curb appeal, and, of course, help the environment. Pro-Home Services understands the value of tax breaks for home improvements and our pros can help you find the best savings while offering the highest quality in materials and installation. Give us a call today! (630)790-0800.