What are Tax Credits and Who is Eligible?
What are Tax Credits?
A tax credit is a dollar-for-dollar amount taxpayers claim on their tax return to reduce the income tax they owe. Eligible taxpayers can use credits to reduce their tax bill and potentially increase their refund.
How Do Tax Credits Apply to Energy Efficiency Upgrades to My Home?
The Inflation Reduction Act (IRA) of 2022 makes it more affordable for families to make improvements, such as purchasing and installing energy efficient equipment and making home repairs, through 2032. Improvements to a primary residence offer opportunities to claim a tax credit. Those owning a second home and using it as a residence may also be able to claim these credits. Credits cannot be taken for property rented to others.
Combined with utility rebates offered by Duquesne Light Company and federal rebates (also referred to as “upfront discounts”) aimed at low- and moderate-income households through the HEAR program, the IRA tax credits could significantly reduce the cost of an energy efficiency home upgrade. Find information on tax credits here.
Who is Eligible for Tax Credits?
Homeowners, including renters for certain expenditures, who purchase energy and other efficient appliances and products. No income limits apply, however there are annual limits on the tax credit amounts.