No, energy savings does not fall all on you. The Federal government does some things to help you.
And they do more than just offer tax credits on solar panel installation. While it’s a significant credit (30% of the cost of equipment and installation), that still leaves many solar panel installations costing $10,000 or more.
That’s out of the reach of many homeowners. Fortunately, plenty of other tax credits are available here in 2016. Check out some of the top ones:
1. Air Conditioning
Air conditioners recognized by ENERGY STAR as the “Most Efficient 2016” are eligible for a tax credit of $300. “Split systems” must have a SEER rating of 16 or more and EER of 13 or more.
Most home systems are split systems.
“Packaged systems” must have a SEER of 14 or more or EER of 12 or more. For both EER and SEER, the higher the rating, the greater the efficiency.
Packaged systems usually sit on concrete slabs next to your home or on your roof. Ask your contractor about your eligibility for this tax credit.
Of all the energy efficiency enhancements your home can get, insulation usually offers some of the greatest efficiency gains. The Fed currently offers a 10% tax credit up to $500. That means the total cost of the product (not the installation) can be $5000 for you to receive the full credit.
Your total cost may exceed that. However, your credit maxes out at $500. You can install the insulation yourself and get the credit.
Many forms of insulation are eligible for this credit, including fiberglass batts, rolls, blow-in fibers, rigid boards, expanding spray, and pour-in-place.
Make sure you check with your contractor or the manufacturer to get your tax credit.
3. Non-Solar Water Heaters
Water heaters are one of the top energy-suckers in every home. The Fed gives you a $300 credit toward buying a new one.
To be eligible, an electric heat pump must have an energy factor greater than or equal to 2.0. A gas, oil, or propane water heater must have an energy factor greater than or equal to .82, or a thermal efficiency of at least 90%.
More Tax Credits Are Available!
…But those three cover some of your biggest wins. You can learn about additional tax credits at the ENERGY STAR website. Credits are available for:
- Biomass stoves
- Air source heat pumps
- Gas, propane, or oil hot water boilers
- Windows, doors, and skylights
Check them out…and watch the energy savings start rolling in!