Time is running out to claim tax breaks on solar panels and energy-efficient home upgrades. The credits, which can save households thousands of dollars, are set to expire at the end of the year. The energy-efficient home improvement program credit allows consumers to claim up to 30% of the total cost, capped at $2,000 for qualified heat pumps and $1,200 for other upgrades. Additionally, the residential clean energy credit offers up to 30% of the project’s qualifying costs for solar panels, which can be worth several thousand dollars. To qualify, projects must be completed by December 31, and homeowners are advised to act quickly and research contractors to ensure they can deliver the necessary documentation. While the federal credits are expiring, there are still incentives available at the state, local, and utility levels, and energy-efficient upgrades can still save money in the long run. Homeowners who cannot afford upgrades this year can consider these alternative options. Overall, consumers can claim up to $3,200 per year in tax credits, making it a significant opportunity to save on energy bills.
Take advantage of tax incentives for solar panels and heat pumps before time runs out.
