Has the rare winter wave in Texas forced you to replace yourwindows or doors? Or maybe you felt it was time to give your home a fresh newlook. Whatever the reason may have been, your home improvement project mightjust save you a few bucks when you file your taxes.

The Inflation Reduction Act of 2023 has brought a lot ofchanges to the tax code, including a new home improvement tax break. This taxbreak is designed to encourage homeowners to invest in their homes and makeimprovements that can increase their value, energy efficiency, and overalllivability. Here's what you need to know about the home improvement tax breakfrom the Inflation Reduction Act of 2023.

What isthe home improvement tax break?

The home improvement tax break is a tax credit that allowshomeowners to deduct a portion of the cost of home improvements from theirtaxable income. Specifically, homeowners can deduct 30% of the cost ofqualifying home improvements from their federal income taxes, up to a maximumof $3,200 per year.

What arequalifying home improvements?

Qualifying home improvements are improvements that increasethe value or energy efficiency of your home. Examples of some qualifying homeimprovements include:

- Upgrading to energy-efficient windows, doors, orskylights

- Upgrading to a high-efficiency HVAC system orwater heater

- Installing solar panels or a geothermal system

- Insulation materials

- Home Energy Audits

It's important to note that not all home improvementsqualify for the tax break. For example, cosmetic improvements like painting orlandscaping do not qualify, nor do repairs or maintenance work.

How doyou claim the tax break?

To claim the home improvement tax break, you'll need to keepdetailed records of the cost of the improvements, including any receipts,invoices, or contracts. You'll also need to file IRS Form 5695 with yourfederal income tax return. This form will ask for information about the cost ofyour qualifying home improvements and the amount of the tax credit you'reclaiming.

It's important to note that the tax break is non-refundable,which means that it can reduce your tax liability but cannot result in arefund. If your tax liability is less than the amount of the tax credit, youwill not receive a refund for the difference. Be sure to consult with a taxprofessional to see if you qualify for the tax break and for furtherinformation.

Ready toImprove your home?

The home improvement tax break from the Inflation ReductionAct of 2023 is a welcome change for homeowners who are looking to invest intheir homes. By offering a tax credit for qualifying home improvements, the Actencourages homeowners to make upgrades that can increase the value and energyefficiency of their homes. If you're planning on making home improvements inthe near future, be sure to reach out to Expo Home Improvement for all of yourenergy-efficient window and exterior door needs.