The home improvement business is a big chunk of the global economy. It includes everything from the sale of building materials, decor, appliances, tradespeople and services.

For instance, a new front door is a great way to improve the appearance of your home. However, installing marble floors in your bathroom might not be a good investment.

A new driveway or garage can also add value to your home. However, if you are considering a major remodel or renovation, keep in mind that the cost of these projects will affect the resale value of your home.

According to the Harvard Joint Center for Housing Studies, the home remodeling industry is set to hit a high in the early months of this year. However, the market is expected to slow down, as inflation and rising mortgage rates take their toll on consumers.

Before deciding to make any improvements, consult with your accountant or CPA to find out how much you can claim as a tax deduction. There are a variety of options, including installing insulation in your attic, resurfacing your pavement, installing security protection devices or even replacing your roof.

Another tax deduction that is worth mentioning is the 30% solar energy credit. This is available for both newly constructed homes and for homeowners who want to install solar panels on their existing residence.

The average amount of money spent on home improvement increased 20% from last year. And the average spending is higher than it has been in the past seven years.