Improve Your Home’s Energy Efficiency & Save with These Federal Tax Credits

a home with new energy efficient upgrades

Take Advantage of the Energy Efficient Tax Credit Through 2032

There are many reasons to make improvements to your home. Homeowners often look to boost curb appeal or better protect their home from storm damage—but the value of improving your home’s energy efficiency shouldn’t be overlooked. And now, with the federal energy efficient home improvement tax credit, homeowners can make these upgrades even more cost efficient.

The energy efficient tax credit will be in effect through 2032, making now the perfect time for homeowners to take advantage. As the Midwest’s leading home exterior contractors, our team at Xtreme Exteriors is well-equipped to make a variety of energy efficient upgrades to your home. Here’s how you can use the tax credit to improve your home and save!

How Much Does the Energy Efficient Tax Credit Offer?

The energy efficient home improvement credit covers up to 30% of qualified expenses, providing a maximum of $3,200 annually to homeowners as tax credits. 

While $3,200 is already a substantial amount, it’s important to note a couple of key details. Firstly, this tax credit is available annually through 2032, meaning homeowners could take advantage of it multiple times before the credit runs out. In addition, this is a tax credit, not a deduction. That means that instead of simply reducing your taxable income, this tax credit is a direct discount on your taxes owed for the given year.

There are further limitations on how much is available for various specific upgrades, but the bottom line is that this is a substantial tax incentive to improve the efficiency of your home.

What Home Improvements Qualify?

This tax credit may be applied to a variety of upgrades homeowners may make to their homes. This includes exterior upgrades such as installing new doors and/or windows, additional insulation, new heating and cooling devices such as central air and furnaces, and heat pump technology upgrades.

Heat pump upgrades are eligible for up to $2,000 of this credit, and these include heat pump water heaters and biomass stoves or boilers. The remaining $1,200 may be put toward home improvement upgrades. Energy Star has an excellent breakdown of these two primary categories, linked here.

Our Energy Efficient Upgrades

At Xtreme Exteriors, our team installs a wide variety of energy efficient home upgrades that qualify for this tax credit. These include:


Homeowners can receive up to $500 back (max $250 per door) on installing energy efficient doors for their home. Make the perfect first impression by creating a beautiful entryway while protecting against drafts.


Modern window designs can greatly enhance the energy efficiency of your home. Our team works with a wide range of products that protect your home against the elements while qualifying for this tax credit. The tax credit provides up to $600 for energy efficient window installation.

Insulated Siding

The entire $1,200 portion of this tax credit may be put toward added insulation, and this includes Energy Star rated (insulated) siding along with weather stripping, spray foam, and house wrapping. 

Speak with a Financial Expert

We highly recommend investigating how best to take advantage of this annual tax credit to upgrade your home. Not only will you save money on needed home improvements, but the added energy efficiency will help reduce energy bills each year and further improve your savings.

To fully take advantage, we urge homeowners to speak with a financial expert, such as a CPA. They’ll be able to help you plan the upgrades you make to your home each year and ensure maximum benefits.

Partner with Xtreme Exteriors to Make Your Home More Energy Efficient

At Xtreme Exteriors, we love transforming homes and helping people turn their vision into reality. However, improving the look of your home is just part of the picture—and we’re always ready to help homeowners add greater energy efficiency to save money and better protect their family from the elements.

If you’d like to learn more about our energy efficient door, window, siding, and more, we’re happy to answer any questions you may have! Reach out to our team or find an Xtreme Exteriors location near you to get started: 

Nixa, MO | Shawnee, KS | Rogers, AR | Pittsburg, KS | Goodlettsville, TN