Energy tax credits are available for homeowners interested in implementing energy saving improvements. There are currently three major energy tax credits available, all of which will help homeowners save energy while also saving money.
Energy Tax Credit 2011
Energy tax credit 2011 covers three different areas. The first area for the tax credit allows homeowners to receive a tax credit of 10% for the cost of numerous energy efficiency upgrades, including:
- Installation of Biomass Stoves
- HVAC upgrades
- Insulation improvements
- Roof improvements
- Replacing inefficient water heaters
- Improving windows, doors, and skylights
The maximum tax credit is $500 and the property must be the homeowner’s primary residence. This energy tax credit applies only to existing homes and specifically excludes new construction. This energy tax credit expires at the end of 2011.
The second area of the 2011 Energy Tax Credit allows homeowners to receive a 30% tax credit, with no maximum, for the installation of Geothermal Heat Pumps, Small Wind Turbines, and Solar Energy Systems.
Finally, the third area of the Energy Tax Credit allows homeowners to received a 30% tax credit, up to $500 per 0.5 kW of power capacity for the installation of fuel cells to help power their home.
For more information on this Energy Tax Credit, visit the EPA’s Energy Star website.
Energy Tax Credit 2016
Existing homes and new construction are both eligible for energy tax credit 2016. It applies to both primary and second residences. This energy tax credit provides for up to 30% of installation costs, with no upper limit.
This energy tax credit applies to geothermal heat pumps, small wind turbines, and solar energy systems. Homeowners have more time to claim this energy tax credit, as it expires at the end of 2016.
Fuel Cell Energy Tax Credit
The fuel cell energy tax credit is similar to energy tax credit 2016, in that it expires at the end of 2016 and applies to the same types of homes. However, this energy tax credit specifically applies to fuel cell energy production only. Homeowners who install a hydrogen fuel cell system in their home are eligible for a 30% energy tax credit, up to $500 per half a kilowatt of production capability of the system.
It’s important to note that rental properties are not eligible for these energy tax credits.
Homeowners interested in pursuing these energy tax credits should contact an energy conservation professional to discuss what options are best for them.
For more information on these tax credits, visit the federal government’s Energy Savers energy tax credit website.
More from this contributor
10 Energy Saving Tips for Renters
Winning with Smart Meters
Energy Saving Home Improvement Projects