Energy Saving Tax Credits

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Energy Saving Tax Credits2017-07-13T16:17:19+00:00

You as a homeowner may qualify for federal tax credits when making improvements or installing appliances to boost the energy efficiency of a home.

Basic Requirements:

From 2010 – 2013 you must purchase new energy-efficient equipment, and the equipment must be likely to remain installed for at least 5 years. The requirements for the residential electricity tax credits vary from year to year the the credit is obtained. The following are the requirements for 2012 and 2013. (Pertaining to earlier years, refer to the Instructions pertaining to Tax Form 5695 for the year.)

Home Improvements (aka Non-business Energy Residence Credit)

For the years 2012 and 2013, homeowners may qualify for the non-business energy property credit rating. This credit is worth 10% from the purchase price of qualified energy-efficient merchandise installed at the taxpayer’s main home. Qualified energy-efficient products include:

  • Insulation
  • Exterior windows and skylights
  • Outside doors
  • Metal or asphalt roof with pigmented coatings
  • Cooling granules that are designed to reduce high temperature
  • Solar panels
  • Water heaters
  • Heat pumps
  • Central air conditioners
  • Furnaces
  • Warm water boilers
  • Advanced main atmosphere circulating fans

You can find a wonderful list of qualifying home improvement gear from the Energy Star website.The non-business electricity property credit is limited to a total of $500 over all years after 2005. Furthermore, the particular tax credit for house windows is limited to a total of $200 for all years after August 2005. (The non-business energy property credit rating is reported on Form 5695, Part II.)

 

Improvements Tied to Main Home

The tax credit regarding non-business energy property is restricted to advancements to and appliances set up at a primary residence. Advancements made on rental homes, second homes, or vacation homes are not eligible for this levy credit. The following kinds of equipment are eligible for a 30% credit with no maximum credit amount through December 31, 2016:

  • Solar panels
  • Solar powered water heaters
  • Geothermal power heat pumps
  • Small wind energy systems
  • Gasoline cells

You can install solar panels, solar water heating gear, or a fuel cell power plant to your home. In general, a qualified fuel mobile power plant converts energy into electricity using electro-chemical means, has an electricity only generation efficiency of greater than 30% and generates at the very least 0.5 (KW) kilowatts. (The IRS spelled out in IR-2006-34.) The tax credit amount is 30% of the expense, including any labor charges for installing the equipment.

Your tax credit is available for equipment installed at the “taxpayer’s” primary residence.

(The residential power efficient property credit is noted on Form 5695, Part I.)