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Tax Credits for Improvements

05/15/24

Many homeowners refinance their mortgages to get a lower interest rate, decrease the loan term, or take cash out for other purposes. When you refinance to make improvements, keep in mind tax credits are available for improvement projects that make your home more efficient or "green." You may be eligible for the nonbusiness energy property credit if you add qualified energy-efficient products such as insulation, exterior windows, skylights or doors, water heaters, heat pumps, furnaces, central air conditioners and certain types of metal or asphalt roof materials. You can find a list of qualifying energy-efficient products on the EnergyStar website. Credits are only available for improvements to a primary residence.

In addition, you can receive renewable energy tax credits for adding solar energy systems, fuel cells, small wind turbines, and geothermal heat pumps. The credit starts at 30 percent for systems placed in service by Dec. 31, 2019 and is gradually reduced through 2021. Credits are available for improvements

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This article contains general information only. Sunflower Bank is not, by means of this article, rendering accounting, financial, investment, legal, tax, or other professional advice or services. This article is not a substitute for such professional advice or services, before making any decisions related to these matters, you should consult a qualified professional advisor.