You know the old saying “don’t judge a book by its cover”? Well, the same can be said of the Inflation Reduction Act of 2022: best not to judge based on the title alone!
Though its name says nothing about it, the IRA is filled with initiatives aimed at improving the environment, including significant opportunities for homeowners looking to increase the energy efficiency of their homes.
Read on to learn more about the IRA’s incentives and how they can be used to improve the energy efficiency and comfort of your Maryland home.
What Is the 25C Energy Efficiency Tax Credit?
A key component of the IRA is the reinstatement of the 25C Tax Credit, now known as the Energy Efficiency Home Improvement Credit. Here are some key things to know:
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It was revived and made retroactive for 2022 at the original 10% credit (which expired in 2021)
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For 2023 through 2032, the credit increases to 30% of the amount paid toward qualifying upgrades
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The original $500 lifetime cap has been replaced with a $1,200 total annual limit on services including insulation and air sealing ($1,200 annual max), energy audits ($150 max), and more
Talk about savings! It’s clear that there’s a huge opportunity for homeowners to upgrade their homes and make them more energy-efficient in an affordable way.
How Can Homeowners Use the Energy Efficiency Tax Credit?
There are many ways homeowners can take advantage of the new-and-improved energy efficiency tax credit. At Total Home Performance, we help Maryland and Delaware homeowners make their homes healthier, safer, and more comfortable by increasing energy efficiency. Some of our home improvements that qualify for the 30% tax credit include:
For insulation, air sealing, and crawl space encapsulation, the 25C tax credit only covers the cost of materials, not installation, and there is a combined $1,200 annual limit. But the Energy Efficiency Home Improvement Credit is only one of several money-saving incentives that Maryland homeowners can qualify for with Total Home Performance.
Total Home Performance: Your Local Experts for Energy Efficiency Rebates & Incentives
Using the energy efficiency tax credit is one way to lower the cost of home improvements that lower your energy bills and make your home healthier and more comfortable. You can also take advantage of rebates through the Home Performance with ENERGY STAR program (HPwES).
We are one of the only participating contractors for this program in the Eastern Shore area, especially when it comes to crawl space encapsulation. Our customers are eligible for up to $7,500 in rebates for many energy-efficient home upgrades.
Between savings through the Energy Efficiency Home Improvement Credit and HPwES, the time has never been better to upgrade your home to be healthier, more comfortable, and more energy-efficient.