Available Energy Tax Credits This Tax Season

Which Home Improvements Qualify?

It’s that time of the year again, the dreaded tax season, and if you’re pinching pennies, then you might be looking into whether you qualify for any energy tax credits. Don’t rely on your accountant to inquire about everything that might qualify. Only you know what you’ve done the past year, and doing research will give you a leg up this year. If you’ve made any home improvements that have contributed to energy efficiency, then be sure to check if you qualify for a little extra something in your refund.

The Energy Efficiency Property Credit

Have you created a more efficient home by using the sun or wind as a means of energy? Then you might qualify for this tax credit. Any form of solar, wind, geothermal and fuel-cell technology qualifies for a rebate. Items that qualify are solar panels and wind turbines (up to 100 kilowatts) used to generate home electricity. Installing solar powered water heaters used to heat at least half of your home’s water supply will also receive a tax credit; however, units used to heat pools or hot tubs do not apply. If you’ve installed geothermal heat pumps or fuel cells that produce a minimum of 0.5 kilowatts of power and rely on renewable resources such as hydrogen, you will also qualify for a tax credit.

Energy Efficiency Improvements

Have you taken the time to improve your home’s insulation? Replacing exterior doors, windows, skylights, and certain roofing materials can get you a tax credit up to 10 percent of money spent on qualified improvements. The maximum credit amount for replaced windows is $200 of the combined maximum credit of $500 allowed.

Residential Energy Property Costs

Have you upgraded the heating or cooling features in your home? Installing a central air conditioning unit or electric heat pumps will qualify you for a tax credit. You will receive 30 percent or more of the cost you spent on energy equipment installed in your home last year, up to $500. Other upgrades that qualify include the following:

  • Electric heat pump water heaters
  • Natural gas water heaters
  • Natural gas furnaces
  • Natural gas hot water boilers
  • Advanced circulating fans for natural gases, propane, or oil furnaces

For you to qualify for energy tax credits, all improvements must have been made to your home in the United States, but do not need to have been done to your main home. You may be able to receive 100 percent of the cost spent on several energy efficient home installations, such as home heating and air conditioning systems. These items are credited based on the kind of property it’s installed in.

Ensure that your energy efficient installations qualify by having the manufacturer’s certification statement, which is often available on their website or in documents accompanied by the product. Live in the Fort Collins area and want to ensure your HVAC products meet these standards before installation? Contact a professional at American Air Heating & Air Conditioning by calling 970-484-0400 or visit us at americanairheatingco.com.