The One Big Beautiful Bill terminates the Nonbusiness Energy Property Credit for expenditures after December 31, 2025.
Previously, the Inflation Reduction Act of 2022 had made significant changes to this credit for expenditures made from 1/1/2023 to 12/31/2032. An overall $1200 annual limit applies through December 31st, 2025. Qualified improvements include windows, skylights, exterior doors, heat pumps, water heaters, central air, wood stoves, and even energy audits.
Until December 31, 2025, you can receive up to an additional $2000 per year for making qualified investments in heat pumps and biomass stoves and boilers.
Serious consideration should be given to accelerating expenditures (to take advantage of the credit) prior to December 31, 2025.
Contact us for more information.
