It’s tax time! Do you qualify for any home energy tax credits?
With the close of 2016 behind us and tax time just ahead it might be a good idea to see if you qualify for any of the home energy tax credits that were offered through the end of 2016. These credits aren’t a refund, but they do reduce the amount of tax you owe.
The question some may be wondering is – what exactly qualifies for a tax credit? A great place to start is on the U.S. Department of Energy’s website. You can also find information on the IRS website.
The U.S. Department of Energy provides a list of 13 home energy tax credits that expired at the end of 2016. This means that if you made home efficiency improvements on or before December 31, 2016 you may qualify for a tax credit. Some of the things you may qualify for are insulation, new windows, exterior doors, a new roof as well as ENERGY STAR certified central air conditioners, furnaces and water heaters to name a few. As a bonus if you installed any renewable energy systems to your home such as solar panels you may qualify for a tax credit of 30%! It’s worth checking into and better yet, speak with your tax accountant to make sure you take advantage of every credit you’re entitled to.
Even if you haven’t currently installed renewable energy sources in your home, you can still take advantage of the Residential Renewable Energy Tax Credit for the next several years. With that said they will be reduced over time, so the sooner you get something in place the more tax advantage you’ll receive. More details can be found here.
In addition to the federal tax credits, it would be beneficial to check on your state and local tax benefits. Check out the DSIRE (Database of State Incentives for Renewables & Efficiency) website which is a comprehensive source of information on the incentives of energy efficiency by state. You can also go to Energy.gov for more information on tax credits, rebates and savings.
Renewable energy especially in the form of solar for residential is becoming increasingly popular as of late. There are numerous benefits to switching to a solar electric system including tax incentives, lower electricity costs, increasing your home’s value and helping the environment. Learn more about planning a home solar electric system here.