Energy-efficient home improvements can earn tax credits [Video]
Posted on Sunday, June 21, 2015 at 10:21:16 PM
Plenty of people want to "go green" to do their part to help the environment, but doing so could also earn homeowners tax credits.
Equipment and materials used in home improvement projects can qualify for a Nonbusiness Energy Property Credit. There are two categories of items that may qualify for this credit. The first group is called "qualified energy efficiency improvements," and includes home insulation, certain roofing materials, exterior doors and exterior windows. The second category is referred to as "residential energy property costs" and include electric heat pumps, central air conditioning systems, stoves that utilize biomass fuels and electric heat pump water heaters. For these materials, a credit can be claimed for up to 10 percent of the cost of the item.
There is also a Residential Energy Efficiency Property Credit. Equipment that qualifies for this credit includes solar panels, certain wind turbines, some geothermal heat pumps, solar-powered water heaters and fuel cells that rely on a renewable resource. This credit can count for up to 30 percent of the cost of the equipment, including installation. There is no upper limit for the credit for solar, wind and geothermal equipment, but there is one for fuel cells.
Home improvement financing for the sort of equipment that offers a tax credit will take you a big step toward realizing a return on investment.