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Are Home Renovations Tax Deductible?

3 min read

Energy-efficient home improvements offer multiple benefits, including potentially saving money and qualifying for home improvement tax credits. This is a great incentive if you’re planning on making energy efficiency improvements for your Birmingham home. Find out about other qualifying purchases and their effective dates below.

What is the Home Improvement Tax Credit?

The Home Improvement Tax Credit is an incentive that you can qualify for when you purchase renewable energy equipment or energy efficiency products. Let’s talk about the eligible purchases:

Renewable Energy Equipment

The IRS considers following devices as renewable energy equipment:

  • Fuel cell property
  • Geothermal heat pumps
  • Small wind turbines
  • Solar panels
  • Solar water heaters

If you purchase and install any of this equipment before January 1st, 2022, then you could qualify for a home improvement deduction worth up to 22% of the product cost.

Energy Efficiency Products

Energy Efficiency Products include the following:

  • Asphalt roofs
  • Doors
  • Energy-efficient exterior windows
  • Insulation
  • Metal roofs
  • Roof products
  • Skylights

The IRS also includes the following energy property expenses in this category:

  • Air conditioning systems
  • Biomass stove
  • Energy-efficient heating systems
  • Natural gas water heater
  • Oil water heater
  • Propane water heater

All of these products in the Energy Efficiency Product category potentially qualify for the Residential Energy Property Credit, which differs from the Home Improvement Tax Credit. Although the Residential Energy Property Credit originally expired in 2014, legislation extended the deduction for multiple years up to the 2020 tax year. Make sure you file while you still can!

Note that the lifetime limit for this credit is $500, with a $200 limit for windows.

The Benefits of Energy Efficiency Products In Your Home

At Window World, we offer three different types of energy-efficient products: windows, doors, and siding.

Upgrade to Energy Efficient Windows, Doors, and Siding

Request Your FREE Estimate Today to Reap the Benefits of Energy Efficiency

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Energy-Efficient Windows

Energy-efficient windows let enough light into your home without changing the internal temperature.

Vinyl Bay Window

Energy-Efficient Doors

Similar to windows, energy-efficient doors prevent the external temperature from adjusting the internal temperature.

Entry Door

Energy-Efficient Siding

Our energy-efficient vinyl siding helps insulate your home to protect against weather temperature changes and keep your home comfortable.
home with vinyl siding

Increase Your Home’s Energy Efficiency With Window World of Central Alabama

If you’re considering making some energy efficiency improvements to your Birmingham home, try our energy efficient products! The team at Window World Central Alabama would love to work with you to find the best solution for your home. We offer a wide range of products to match different home styles and designs. Contact us today to schedule a free in-home consultation.