What Home Improvements Are Tax Deductible In 2022? 

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Are you planning to make a few home improvements to improve energy efficiency? Fortunately, you can save some cash with easy home improvement.  

The federal government provides tax credits to cover the expenses of these energy-efficient changes/repairs. The tax credit is not the same as a rebate that gives you cash back once you have made a purchase. Instead, it’s a deduction that you can make while filing your annual tax returns. Depending on other deductions, you can reduce the tax you pay as a homeowner. 

Today’s tax credit might not be available next year, so homeowners need to act fast. The following tax credits will apply up to 12/31/2022.  

Let’s dive in! Ensure you check out Energy.gov to learn more. Also, you should consult a tax advisor first concerning your tax situation.

Tax Deductible Home Improvements to Make In 2022 

Equipment Tax Credits 

Air Source Heat Pumps 

Installation of ENERGY STAR certified heat pumps earn homeowners a tax credit of $300.  

Requirements include: 

Split system 

  • EER>=12.5 
  • HSPF>=8.5 
  • SEER>=15 

Package system 

  • EER>=12 
  • HSPF>=8 
  • SEER>=14 

Central Air Conditioning 

An air conditioner-certified ENERGY STAR efficient could earn you a tax credit of about $300. 

Requirements include: 

Split system 

  • EER>=13 
  • SEER>=16 

Package system 

  • EER>=14 
  • SEER>=12 

Read Our Blog: The Basics of Insulation 

Gas, Oil, or Propane Furnace and Fans 

Installation of ENERGY STAR certified water boilers can earn you $150 tax credits, including installation expenses. 

Requirements include: 

  • AFUE>=95 

Electric water heater 

Many electric water pumps that are ENERGY STAR certified can also earn you a tax credit of $300.  

Requirements include: 

  • UEF>=2.2 

Gas, oil, or propane water heater 

Some ENERGY STAR certified oil water heaters qualify for a tax credit of $300. 

Requirements include: 

  • UEF>=0.82 

Qualified Energy Efficiency Improvements 

Roofs (Asphalt and Metal)  

You can earn a 10% tax credit on the cost if you install ENERGY STAR certified asphalt and metal roofs with cooling granules and pigmented coatings designed to minimize heat gain.  

These roof products reflect most sun rays, thus lowering roof surface temperatures by at least 100F and reducing the amount of heat transferred into a home.  

Requirements include:  

  • Metal roofs should have the proper pigmented coatings, while asphalt roofs should have appropriate cooling granules. 

Windows and Doors 

Doors and windows that are ENERGY STAR certified enhance comfort and protect the environment. Such entries can earn you 10% of the price up to 500 dollars, while the windows usually cap at $200. 

Requirements include: 

  • ENERGY STAR certified windows and doors, even if it’s one 

Read Our Blog: What Is the Right Insulation for Me? 

Insulation 

Adding sufficient insulation is a cost-effective home improvement. Doing so can earn you tax credits of 10% of the price up to $500 without including the installation expenses.  

Requirements include:  

  • You must be the primary owner 
  • The home must not be new or a rental 
  • The credit applies to improving or replacing insulation with the primary goal of insulation  
  • Ensure you have a Manufacturer’s Certification Statement copy for your taxes 

Save Money Today with These Tax Credits  

Poor insulation could be a big cause of your energy bill. HeatBusters provides fast and professional attic insulation services with a free estimate. We’re dedicated to ensuring your family saves energy (and money). Contact us today to take advantage of these tax credits before they’re gone.