Expert Guide: Claiming the Energy Efficient Home Improvement Credit in 2024

Unlock Tax Benefits: Energy Efficient Home Improvement Credit Explained

As a homeowner or small business owner navigating the ever-evolving tax landscape, you may be eligible for significant savings through the Energy Efficient Home Improvement Credit. Thanks to the Inflation Reduction Act of 2022, the IRS has designated new clean energy credits—helping Americans invest in sustainable upgrades while reducing their tax liability.

At Tax Time 365, a virtual firm serving clients nationwide, we specialize in helping small business owners and individuals remain compliant and maximize tax incentives.

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IRS Notice 2023-59: What Homeowners Need to Know

The IRS Notice 2023-59 outlines specific guidelines for claiming the cost of home energy audits under the Energy Efficient Home Improvement Credit. To qualify, audits must meet established criteria—including being conducted by certified professionals and following recognized industry standards. This is crucial for those who want to include audit expenses when they claim their credit.

Eligible improvements include high-efficiency windows and doors, insulation, advanced HVAC systems, and more. These upgrades can boost your property’s comfort and value—while delivering substantial tax benefits.

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Maximize Savings: Understand the Non-Refundable Tax Credit

The Energy Efficient Home Improvement Credit is non-refundable, meaning it can directly reduce your tax liability but will not result in a refund beyond your owed taxes. Proper documentation and adherence to IRS requirements are critical for ensuring eligibility and avoiding compliance issues.

Pro Tip for Small Business Owners: If your principal residence doubles as your place of work or home office, there may be additional nuances to credit eligibility and the deduction of related improvements. Tailored advice from an accounting expert is essential.

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How Tax Time 365 Can Help

Ready to make your home more energy efficient and increase your tax savings? Our knowledgeable advisors at Tax Time 365 can help you:

  • Determine the eligibility of your upgrades
  • Properly document and substantiate your claims
  • Integrate credits and deductions for businesses operating from home
  • Stay in compliance with the latest IRS requirements

Contact us today for personalized guidance on claiming the Energy Efficient Home Improvement Credit, and let our expertise ensure you capture every available benefit.

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