Comprehensive Guide to Remodeling Tax Credits in New Hampshire

Planning a home remodeling project can be a great expense. But with plenty of available tax credits for New Hampshire remodels, you can save money on your project. Understanding the remodeling tax credits available to you can help you reduce the total cost of your investment so you can eliminate financial stress from the equation altogether.

In this blog post, the remodeling experts at Foremost Builders provide a comprehensive overview of the available remodeling tax credits in New Hampshire so you can get the most out of your remodel.

Available Tax Credits in New Hampshire

New Hampshire offers various tax credits for energy-efficient remodeling projects. One program currently in development is the Home Efficiency Rebates Program, which offers tax incentives for energy-efficient upgrades like insulation, windows, and HVAC systems.

While these rebates are currently unavailable, homeowners who complete qualifying projects on or after August 16, 2022, may be eligible to receive tax credits as soon as the summer or fall of 2025. The New Hampshire Department of Energy plans to allow the lesser of the following rebate amounts per unit based on their modeled energy savings:

• 20 – 34% modeled energy savings: 100% of project cost or up to $15,000.
• 35%+ modeled energy savings: 100% of project cost or up to $20,000.

Additionally, the Residential Clean Energy Credit provides 30% of the costs for new, qualified clean energy properties for your home, such as qualifying solar panels, wind turbines, geothermal heat pumps, fuel cells, and battery storage installations performed between 2022 and 2032.

Tax Deductions for Medical Additions

Some aging-in-place remodels can be claimed as medical deductions on your taxes. Home improvements like wheelchair ramps, wider doorways, grab bar installations, and shower-tub conversions may qualify as tax-deductible renovations. It’s important to note that you can only deduct the amount that exceeds 7.5% of your adjusted gross income, so be sure to consult with a tax professional when filing.

Energy-Efficient Remodeling Benefits

Making energy-efficient improvements to your home helps you save money on utilities, enhances your comfort, and aligns with state and federal sustainability efforts. By incorporating ENERGY STAR®-certified products and weatherization improvements into your remodeling plans, you can save money through available tax incentives while ensuring lasting savings on your utilities for even more cost-effectiveness.

How to Claim These Credits

The process for claiming these credits differs depending on the program. The Home Efficiency Rebates Program is currently in development, so claiming these credits isn’t yet available; however, homeowners should keep all documentation related to their home improvements made after August 16, 2022, to reap available incentives once the program is rolled out in 2025.

All other federal tax credits must be claimed during your annual filing. The best way to ensure you get the greatest incentive for your home remodeling project is by working with a tax professional to file your taxes and claim any available deductions.

Frequently Asked Questions

What’s new in 2024 for New Hampshire homeowners?

New tax incentives for New Hampshire homeowners include the federal solar tax credit, energy-efficient home improvement credit, and Home Efficiency Rebates Program.

Which projects qualify for tax benefits?

New heat pumps, insulation, range, ventilation improvements, and solar panels may qualify you for a rebate under the Inflation Reduction Act.

When can a kitchen remodel qualify for deductions?

If you’re using a portion of your kitchen for business or making medically necessary modifications, your kitchen remodel may qualify for tax deductions.

Take Advantage of Available Tax Credits With Help From Foremost Builders

Navigating the available tax credits for your home remodel can be challenging, but Foremost Builders makes it easy. Our deep knowledge of local tax incentives and rebate programs allows us to help homeowners maximize their savings on their home improvement projects.

Take advantage of available tax credits by contacting our home remodeling experts in New Hampshire today!

Disclaimer: This blog post is for informational purposes only and should not be considered as financial or tax advice. For advice specific to your situation, please consult with a licensed financial advisor or tax professional.