Just as there are many ways to make your home more energy efficient, from better insulation to new windows and doors, from solar panels to the newest in energy efficient whole-house heating and cooling systems, there are just as many benefits to making your home more energy efficient. Perhaps the most obvious benefit is the immediate savings in utility costs. A homeowner with a new system can expect to save between twenty and forty percent compared to an old, less efficient system. A new system also gives you the peace of mind that comes with confidence in the reliability of your furnace and air conditioner. One benefit you may not have considered, though, is this…
The Residential Energy Efficiency Property Tax Credit
That’s right, the U.S. Department of Energy is offering real, tangible tax credits through the end of 2016 when you make your home more energy efficient. These tax credits are valid on qualifying equipment installed in your existing home during the years 2015 and 2016. The cumulative maximum amount of tax credit that can be claimed by a taxpayer in all years is a combined $500. In fact, even if you have already claimed a tax credit of $500 for purchases made in a previous year, you may still be eligible for additional tax credits for new equipment purchases.
Qualifying equipment includes energy efficiency improvements to your existing home, including heating, cooling and water-heating equipment. The credit is equal to the full cost of the equipment, with different caps depending on the item. Qualifying equipment includes:
- Hot water heaters, electric heat pumps and central air conditioners that meet established energy efficiency standards
- Advanced main air circulating fans
- Insulation materials and systems designed to reduce a home’s heat loss or gain
- New doors and windows that meet established energy efficiency standards
As they say on late night infomercials, “But wait, there’s more!”
Nonbusiness Energy Property Tax Credit
Equipment and materials may also quality for the NonBusiness Energy Property Tax Credit if they meet efficiency standards set by the Department of Energy. You can claim these credits for 10% of the cost of Qualified Energy Efficiency Improvements and 100% of Residential Energy Property Costs, up to certain caps depending on the equipment.
Qualified Energy Efficiency Improvements include:
- Home insulation
- Exterior doors
- Exterior windows and skylights
- Certain roofing materials
Residential energy Property Costs include:
- Electric heat pumps
- Electric heat pump water heaters
- Central air conditioning systems
- Natural gas, propane or oil water heaters and boilers
- Stoves that use biomass fuel
- Natural gas, propane or oil furnaces
- Advanced circulating fans for natural gas, propane or oil furnaces
Improving the energy efficiency of your home will pay off, in more ways than one.
Are you ready to make your home more energy efficient? Call Crown Group Ohio to find out more!