Tax Credits For Energy Efficient Homes
Tax Credits For Energy Efficient Homes – Taxes are tricky and if you are not a tax expert you may want to get a professional to look things over for you. Things change and there are tax codes for homeowners that started in 2019. There are several home improvement and renewable energy tax credits the can help you save money on your tax return. In addition, there are rebates available for energy efficient appliance purchases that help you save money.
Tax Credits For Energy Efficient Homes
What is an Energy Efficient Property?
Homeowners have incentives available to they to make their home into an energy efficient home. In addition to these incentives the government has offered tax credits to help offset the costs of these repairs or home changes. These do not come in the form of cash on hand, but a credit on your annual tax return. These are similar to the IRS solar tax credit. These tax credits were set to expire in 2021 but there may be the option to redo your tax return with this information or, it is still possible for it to be approved to move into the 2022 tax year.
What are these tax credits?
Residential Renewable Energy Tax Credit
There are several pieces of equipment that will qualify you for the Residential Renewable Energy Tax Credit. This can include solar, wind, fuel-cell, or geothermal technology. You can purchase solar panels or photovoltaics that generate electricity as long as the electricity is used for the home. You can also have solar-powered water heaters. The system must be used inside the home and at least half of the home’s system should be solar. Wind turbines would qualify as long as they generate 100 kilowatts. Some geothermal heat pumps will qualify and fuel cells that rely on renewable resources.
Credit Details
The tax credit has a range of 22%-30% f the cost which would include anything you paid for installation.
Conclusion
Many people are moving towards energy efficient homes for a myriad of reasons. This can benefit the country, state, city, community, and your individual home and lifestyle. It has a large upfront cost but can benefit you with savings over time. Without even knowing it there are changes you may have made that could qualify you for these tax credits or rebates and although the credits ended in the year 2021, it would be a good idea to continue to keep documentation in case any of these credits are reinstated in the future.
For more information on purchasing a home and the energy efficient opportunities for your home or more Tax Credits For Energy Efficient Homes, contact me today.
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