Energy efficiency is a priority in the United States, and the federal government now offers substantial tax deductions if a homeowner’s primary residence has modifications or improvements that make the house more energy conscious.
Any appliances bought operating on less power or designed with energy efficiency as the main priority are applicable for a tax deduction. Appliances or other renovations made in the years of 2006, 2007, 2009, and 2010 are all eligible for energy tax credits.
Some common examples of renovations made to a home to ensure a more energy efficient environment include storm windows, skylights, external doors, new roofs, or an energy efficient central heating and air unit. A 30% tax credit will be issued to you for the purchase price of the appliance or restoration. The credit will only go toward a maximum of $1500.00.
The International Energy Conservation Code developed criteria regarding the most energy efficient home items, and these qualifications must be met or exceeded for your items to qualify for the credit.
Any improvements made to rental properties or any other property aside from a homeowner’s primary residence cannot be used for this tax credit. The credit is limited to only appliances or other items purchased to make the main home more energy efficient.
Solar power panels, wind and geothermal energy, and fuel cell power plants may have a 30% tax credit with no payment ceiling. In other words, no matter the amount of money spent on a solar power panel or other energy alternative, the expenditure is eligible for a 30% tax credit.