Tax credits and Focus on Energy rebates can help you save this tax season and beyond
You may have heard about the Federal Inflation Reduction Act. This act includes funding to help people with projects that can reduce their monthly energy bills. Starting in 2023, new federal tax credits became available to reduce the cost of energy-related home upgrades.
Homeowners may be eligible for an Energy Efficient Home Improvement Credit covering up to 30% of the cost for energy-efficient home upgrades (e.g., home insulation, windows and furnaces). In addition, the Residential Clean Energy Credit provides an income tax credit of up to 30% of the project cost for the purchase and installation of clean energy equipment. There are yearly limits on the amount of tax credits a taxpayer can claim. Consult Home Energy Tax Credits information on the Internal Revenue Service website and your tax professional when planning your next home energy improvement.
Combine tax credits with rebates
We Energies customers can save more than ever before on energy-efficient home upgrades, by combining the federal tax credits with a rebate from Focus on Energy, our utility energy efficiency program. Watch for updates on Inflation Reduction Act Home Energy Rebates, likely becoming available in Wisconsin later in 2024.