Federal Tax Credits for Consumer Energy Efficiency

energy star appliances are part of green construction

There are still federal tax credits available to consumers who purchase certain energy-efficient products.  The Energy Star website has a list of the products that are available for tax credits, and the amounts.  They also note that not all energy efficient products will necessarily qualify.

“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.”

Here are the categories of products.

The following applies to the 6 product categories below:

Tax Credit: 10% of cost up to $500 or a specific amount from $50–$300. Expires: December 31, 2013 Details:Must be an existing home & your principal residence. New construction and rentals do not qualify.

  • Biomass Stoves
  • Heating, Ventilation, Air Conditioning
  • Insulation
  • Roofs (metal and asphalt)
  • Water Heaters (non solar)
  • Windows & Doors

The following applies to the 3 product categories below:

Tax Credit: 30% of cost with no upper limit Expires: December 31, 2016 Details: Existing homes & new construction qualify. Both principal residences and second homes qualify. Rentals do not qualify.

  • Geothermal Heat Pumps
  • Small Wind Turbines (residential)
  • Solar Energy Systems

The following applies to the single product category below:

Tax Credit: Credit Details: 30% of the cost, up to $500 per .5 kW of power capacity Expires:December 31, 2016 Details: Existing homes & new construction qualify. Must be your principal residence. Rentals and second homes do not qualify.

  • Fuel Cells (residential fuel cell and microturbine system)

Although only a handful of people may be considering many of these options for their homes, it’s certainly worth looking into energy efficient windows and doors, both to save on energy costs and take advantage of the tax credit.  These particular credits will expire at the end of 2013.  Now is the time to consider making changes to your home in preparation for next winter.

For windowes and doors:

Tax Credit Amount: 10% of the cost, up to $500, but windows are capped at $200.

Requirements:  Must be ENERGY STAR qualified. You do not have to replace all the windows/doors/skylights in your home to qualify. And it doesn’t need to be a replacement either – installing a new window where there wasn’t one previously (like in an addition) qualifies.  Tax Credit does NOT include installation costs.

Innovation Construction is familiar with all of the requirements for receiving these energy efficiency tax credits.  Please give us a call if you are considering replacing old windows, doors, insulation, roofing, etc. with new, energy-efficient products.

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