Federal Tax Credits for Consumer Energy Efficiency
Many home energy improvement upgrades provide you with a valuable tax credit.
If you purchase an energy-efficient product or renewable energy system for your home, you may be eligible for a federal tax credit. Below you will find an overview of the federal tax credits for energy efficiency.
Please note, not all Energy Star qualified products qualify for a tax credit. Energy Star distinguishes energy efficient products which, although they may cost more to purchase than standard models, will pay you back in lower energy bills within a reasonable amount of time, without a tax credit.
Energy Saving Measures: Heating& cooling, insulation, appliances, air sealing, etc.
Federal Tax Credit: 30% of cost up to $1,500
Energy Producing Measures: Geothermal, Solar and Wind.
Tax Credit:30% of cost with no upper limit
- Must be an existing home & your principal residence. New construction and rentals do not qualify.
- Must be installed and operational in 2010.
- In most cases, must be installed by a certified tax credit professional.
- Not all cost associated with an energy efficient project can be included in the 30% calculation.
- Need to have a Federal tax liability in order to claim the credit.
Tax Credit: 30% of the cost, up to $500 per .5 kW of power capacity
Expires: December 31, 2016
How to apply:
- Save your paid-in-full receipts from the certified Contractor.
- Save the Manufacturer’s Certification Statement for your records.
- Submit Form 5695 with your Federal taxes.
A tax credit is a very good thing to have. The tax credit covers your tax liability dollar for dollar. If you paid in $3,000 during 2010 in Federal income taxes and you have a $1,500 tax credit, the government will send you a check for $1,500. Wish I had a credit coming for saving energy at my house…
For more information about Federal Tax Credits, visit the Department of Energy web site, www.energystar.org, you will be glad you did.
Thank you for stopping by detectenergy.com, hope you come back soon, but I won’t leave a light on for you…