Looking to increase the energy-efficiency of your home this year? Well, you are in luck – if you purchase an energy-efficient product or renewable energy system for your home, you will probably be be eligible for a decent-sized renewable energy tax credit. Not bad, considering that whatever you do is also going to save you money on your utility bills! While most people would think that if they just buy Energy Star rated products then they would be eligible for the credits, not all Energy Star items can qualify, so be sure to do your homework before running out and buying the first thing you come across. In addition to Federal tax credits, there are also energy incentives or rebates by state for going green at home, which will be discussed after the Fed ones. There are different dollar amounts, percentages, and dates for different products and jobs, so be sure to check out the details for what you plan to do very carefully. Let’s take a look at what tax credits are available, dependent which efficiency upgrades you make at your home.
The work must be done on an existing home and this home must be your principal residence. Rentals and new construction do not qualify.
Existing homes & new construction qualify, as do both principal residences and second homes. Rentals do not qualify.
Existing homes & new construction qualify, and the home must be your principal residence. Rentals and second homes do not qualify.
So, how would you go about applying for these Federal tax credits and rebates? Well, after you have done your homework and purchased the appropriate products/had correct items installed, head on over to the Energy Star website, which provides information on the necessary tax forms and other information.
However, don’t stop there – there may be State credits and rebates available as well!
The Database of State Incentives for Renewables & Efficiency, or DSIRE, provides a full list of state, local, utility and federal incentives and policies that promote renewable energy and energy efficiency. Created by the U.S. Department of Energy, it is an amazing reference to all things related to your home state, so be sure to remember to use it in addition to any Federal information you may find. You don’t want to leave any tax credits or rebates on the table while they are still available!
A major key to our communal survival on this planet is by using energy in a much more efficient manner. We cannot continue to destroy the planet in order to continue living the exact same way we did 25 years ago, so we have to make changes in the way we both harvest energy and use energy at home. Upgrading your home to be more energy efficient is a huge component of this, so please – when remodeling, building, or when just wanting to “go green” at home, take advantage of these state and federal energy rebates and credits whenever possible. They will save you some money and save us all some energy.
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