Save More with Tax Credits for Energy-Efficient Home Improvements

Tax credits for energy-efficient home improvements are extended and expanded because of the Inflation Reduction Act.

pictudre of a home rooftop covered in solar panels in a bright sky
(Image credit: Getty Images)

If you are planning a few home improvements that will boost the energy efficiency of your house, you may save some money on your projects under the Inflation Reduction Act (IRA), a law designed to address climate change. While the law is designed to help businesses adopt more eco-friendly measures and jump-start clean energy production, there are also incentives for individuals to "go green" and save some money.

For example, homeowners can cut their tax bill by installing new energy-efficient windows, doors, water heaters, furnaces, air conditioners, etc. That's because the IRA extends and enhances two tax credits that reward "green" upgrades to your home. 

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Rocky Mengle

Rocky Mengle was a Senior Tax Editor for Kiplinger from October 2018 to January 2023 with more than 20 years of experience covering federal and state tax developments. Before coming to Kiplinger, Rocky worked for Wolters Kluwer Tax & Accounting, and Kleinrock Publishing, where he provided breaking news and guidance for CPAs, tax attorneys, and other tax professionals. He has also been quoted as an expert by USA Today, Forbes, U.S. News & World Report, Reuters, Accounting Today, and other media outlets. Rocky holds a law degree from the University of Connecticut and a B.A. in History from Salisbury University.