Are there any tax breaks for home improvments?

See this link

Click on the home improvements section

Not in general. The Federal Government allows certain itemized deductions up to a maximum allowance. Information about what is deductible is on the the IRS website:

Itemized Deductions

There may be specific tax breaks, such as building renewable energy into your home.

If you can find a way to claim that your home is an office, you may be able to deduct more things. I would advise contacting a tax professional before making any changes to the way you file taxes.

IRS says:

Permanent improvements. A permanent improvement increases the value of property, adds to its life, or gives it a new or different use. Examples of improvements are replacing electric wiring or plumbing, adding a new roof or addition, paneling, or remodeling.

You must carefully distinguish between repairs and improvements. See Repairs, earlier, under Deducting Expenses. You also must keep accurate records of these expenses. These records will help you decide whether an expense is a deductible or capital (added to the basis) expense. However, if you make repairs as part of an extensive remodeling or restoration of your home, the entire job is an improvement.

Example:

You buy an older home and fix up two rooms as a beauty salon. You patch the plaster on the ceilings and walls, paint, repair the floor, install an outside door, and install new wiring, plumbing, and other equipment. Normally, the patching, painting, and floor work are repairs and the other expenses are permanent improvements. However, because the work gives your property a new use, the entire remodeling job is a permanent improvement and its cost is added to the basis of the property. You cannot deduct any portion of it as a repair expense.

Adjusting for depreciation deducted in earlier years.

Decrease the basis of your property by the depreciation you deducted, or could have deducted, on your tax returns under the method of depreciation you properly selected. If you deducted less depreciation than you could have under the method you selected, decrease the basis by the amount you could have deducted under that method. If you did not deduct any depreciation, decrease the basis by the amount you could have deducted.
If you deducted more depreciation than you should have, decrease your basis by the amount you should have deducted, plus the part of the excess depreciation you deducted that actually decreased your tax liability for any year.
If you deducted the incorrect amount of depreciation, see How Do You Correct Depreciation Deductions in chapter 1 of Publication 946.

Fair market value defined.

The fair market value of your home is the price at which the property would change hands between a buyer and a seller, neither having to buy or sell, and both having reasonable knowledge of all necessary facts. Sales of similar property, on or about the date you begin using your home for business, may be helpful in figuring the property’s fair market value.

IRS Pub 587

That IRS gibberish is not very helpful pertaining to your actual question, but it’s a jump-off point.

As mentioned earlier in this thread, a “formal” office goes a looong way.

Regarding loans…if you get a home equity loan, you can write off the interest if you itemize your taxes. You can use the loan to pay for pretty much anything, including home improvements.