It pays to go green, literally.
As of January 1, 2015, the Residential
Energy Efficiency Tax Credit has been restored, and the Residential
Renewable Energy Tax Credit has been extended. That means that those who
installed energy efficient products in their home during 2015, or plan to in
2016, could actually get a break on their taxes.
Of course, the tax credit is only
applicable on qualifying home improvements. It doesn’t hurt to look at the
lists below to see if your upgrades qualify, especially since the tax credit
could amount to 40% of the install cost.
Residential Energy
Efficiency Tax Credit
Eligible products include:
. Heating, cooling,
and water heating equipment
. Advanced
main air circulating fan
. Electric
heat pump and water heater
. Biomass
stoves
. Central
air conditioner
. Natural
gas, propane, oil water heater, oil furnace, or hot water boiler
. Building envelope renovations
. Roofs – pigmented roofs designed
to reduce heat gain, and asphalt roofs with cooling granules
. Exterior doors and windows,
including skylights
. Insulation materials and systems
To be eligible for the tax credit, each of these products
has precise requirements; so be sure to review the Residential
Energy Efficiency Tax Credit requirements prior to making a claim on your
2015 taxes or executing a new project in 2016.
Residential Renewable
Energy Tax Credit
For all renewable home energy projects, those tax credits
have recently been adjusted. For electric property and solar water heating
property, the 30% tax credit has been extended through 2019.
In terms of fuel
cell property, small
wind energy property, and geothermal heat
pumps, there has been no change to the tax credits. The 30% tax credits are
only eligible for qualified expenditures, with no maximum credit (minus fuel
costs), and expire at the end of 2016. Please review the Residential
Renewable Energy Tax Credit for more on the requirements for details on
each credit.
To learn more about the ins-and-outs of tax the tax credits,
ENERGY STAR provides a summary of the
credits and tax
credit frequently asked questions. If you installed a system in 2015 and are
claiming credit on your 2015 taxes, these resources will be highly important.
When taking on a large home
energy project, check in with The Energy Experts of Pro Energy Consulting each
month for more valuable information on these crucial topics.