What is an energy efficiency tax credit?
By Bob Millaway, South Jersey Community Expert & REALTOR®
An energy efficiency tax credit directly reduces the amount of tax you owe when you make qualifying energy-efficient home improvements. The federal Energy Efficient Home Improvement Credit offers 30 percent of the cost for insulation, windows, doors, heat pumps, and water heaters, up to annual limits. The Residential Clean Energy Credit covers 30 percent of solar panels, battery storage, and geothermal systems with no dollar cap.
Why It Matters
Tax credits reduce the net cost of energy improvements by thousands of dollars, making upgrades more affordable and shortening the payback period.
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