Energy Efficient Products Now Eligible for Tax Credits

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.