Is your home leaking money?
Wealth isn’t just about accumulation; it’s about being intentional with your resources.
Optimizing your home’s energy efficiency is a prime example.
Just as we seek to help maximize your financial returns, you can maximize your home’s comfort and value, while also leveraging energy credits to lower your taxes.
Our goal today, is to help you:
– Discover hidden savings via a professional home energy audit.
– Reduce taxes by leveraging energy credits.
– Understand two key 2025 energy tax credit changes.
– Increase awareness of energy-efficiency scams.
Useful Home Energy Audits
A good energy audit includes a detailed report of where your home is losing energy, and what you can do to fix it.
The first step, is finding a certified energy auditor. Specifically, a professional who’ll provide you unbiased information and isn’t selling products.
Finding a Reputable Auditor
The U.S. Department of Energy recognizes about 10 home energy auditor qualified certification programs for the Energy Efficient Home Improvement Credit.
To find certified professionals near you, try the Building Performance Institute (BPI) locator. Keep in mind, BPI is just one locator option.
Ideally, select an auditor that doesn’t perform repairs. This helps ensure less bias results.
Related…
Mass Save® is a collaboration of Massachusetts utilities that offer home energy assessments (at no cost), rebates and incentives to help you reduce your energy costs.
Incentive Example:
The Mass Save HEAT Loan offers 0% financing for eligible energy-efficient upgrades. Starting January 1, 2025, you can finance up to $25,000. The financing covers a range of improvements, including insulation, heat pumps, batteries and more.
Most states offer energy-efficiency programs, supported by state, utility and federal incentives, including New Hampshire.
Therefore, before upgrading any cooling or heating system, or replacing any appliance, be sure to check for available rebates and incentives.
Pinpointing where your home loses the most energy will help you prioritize repairs and maximize IRS home energy credits.
Resource: Here’s a helpful chart listing what to expect an auditor to have for tools, (e.g., combustion analyzer, infrared camera, digital probe thermometer, etc.) and what the audit entails.
Finally, watch out for unsolicited “free” energy audit offers. Some companies use these to push you into buying things you don’t need. Always double check who the auditor works for and get a few different opinions before agreeing to any work or signing on the dotted line.
Home Energy Tax Credits & Key 2025 Changes
The Energy Efficient Home Improvement Credit is available for qualifying home improvements made from January 1, 2023 through 2032. To qualify for these credits, generally the improvements must be for your primary residence and use only new materials and systems.
2 Key Changes:
There have been two key changes to the program starting in 2025, including:
#1—Energy-efficient products eligible for the credit need to be manufactured by “qualified” manufacturers.
The IRS is establishing a program to certify manufacturers whose products meet specific energy efficiency standards. This requirement helps ensure the products receiving tax credits are genuinely contributing to energy savings.
#2—When claiming the credit, you must provide the Product Identification Number (PIN) for the qualifying items on your tax return.
Basically, the PIN is a unique ID the IRS uses to ensure the product meets standards, comes from a legit company and matches your credit claim.
Watch Out for Energy-Efficiency Scams
The number of U.S. solar installations is expected to double by 2030, according to the Solar Energy Industries Association®.
Therefore, it’s not surprising we’re seeing increases in solar scams.
The U.S. Treasury describes popular solar scams in their article, Consumer Solar Awareness. (It also talks about buying vs. leasing solar power systems.)
The article highlights several scam tactics, including:
– Sales pitches saying, “This is a government program” to make you think a solar installation is free or government-endorsed.
– Promises of free solar panels and limited-time offers and other pressure tactics urging you to sign up without examining the details.
– Promises of tax credits even though you owe no taxes or promises that the government will send you a tax rebate check in the mail.
Overall, solar panels may be a good option to lower your energy costs, but take your time when evaluating your options.
Buyer Beware: In general, if something is unsolicited, creates a sense of urgency, demands immediate or unusual payment, or sounds too good to be true—assume it’s a scam.
[Related]: Since the weather is getting warmer, watch out for paving scams.
Helpful Tips: No matter if you’re buying a new home or an appliance, be sure to look for the Energy Star mark. Keep in mind, the Energy Star isn’t always the only requirement for tax credits. But, it’s a good indicator of energy efficiency and, therefore, a good place to start.
Finally, don’t forget about Consumer Reports, a nonprofit organization that provides unbiased testing and ratings of products and services, (e.g., new A/C, refrigerator, smart thermostat, etc.). You can often access their reports online for free with most library memberships.
–David Bunker, Financial Advisor & Licensed Fiduciary
Before You Go
Get help optimizing your retirement income. Download our FREE “Prolonging Retirement Income” checklist.
Also, receive help retiring to the life you want, schedule a complimentary financial planning consultation.
This communication was prepared with financial writer Sharron Senter’s assistance, based on interviews with David Bunker, a financial advisor and licensed fiduciary.
Bay Colony Advisors, DBA Windsor Wealth Management, is not a Certified Public Accountant and does not provide tax, legal, or accounting advice. Any tax-related information provided is for general informational purposes only and should not be construed as legal or tax advice. Each individual’s tax situation is unique, and you should consult with your own tax, financial, or legal advisors before making any decisions. We strongly recommend seeking the advice of a qualified CPA or other professional for personalized tax advice.