Tax season is officially behind us, but that doesn’t mean it’s too early to start planning ahead. In fact, if you’re a homeowner, now is a great time to think about how energy-efficient upgrades made this year could pay off when it’s time to file next spring.
Thanks to the Inflation Reduction Act, a wide range of home improvements may qualify for federal tax credits worth up to $3,200 annually. What makes this even better? Many of these upgrades can also lower your utility bills and make your home more comfortable year-round.
Here are a few smart upgrades that may be eligible for credits:
- Home energy audits: A great first step to uncover leaks or inefficiencies that could also potentially earn a $150 tax credit.
- ENERGY STAR-certified doors and windows: Help keep temperatures steady while qualifying for up to $600 in tax savings.
- Insulation improvements: Sealing attics, crawlspaces, or walls can reduce heating and cooling costs by 15% or more, and may be eligible for up to $1,200 in credits.
- High-efficiency HVAC systems: Installing heat pumps or advanced furnaces could qualify for up to $2,000 in credits and deliver long-term energy savings.
In New Jersey, those savings can stack up even more. Through the New Jersey Clean Energy Program, eligible homeowners can receive state rebates of up to $6,000 for whole-home energy improvements, plus access to 0% interest financing. And while you’re at it, check out South Jersey Gas, which also offer additional rebates and incentives for equipment upgrades, insulation improvements, and more.
Beyond monthly savings, energy upgrades can also increase your home’s value. According to a study by Freddie Mac, energy-efficient homes sell for an average of 2.7% more than similar properties, which is an important consideration if you plan to sell down the road.
Still, many homeowners are unaware of these opportunities. A 2023 survey found that more than 70% of U.S. homeowners didn’t know about the Inflation Reduction Act’s home energy rebates and credits, despite a growing interest in reducing household expenses.
With the rest of 2025 ahead, now’s a great time to explore which upgrades might make sense for your home, and your 2026 tax return.
Not sure where to begin? Discover rebates, assessments, and expert advice, exclusive to South Jersey Gas customers. Visit sjgsaveenergy.clearesult.com to learn how small changes today can lead to meaningful returns tomorrow.
