(This is a guest post by David Quilty, owner and publisher of The Good Human, a comprehensive site on sustainable living and progressive politics. Follow him on Twitter.)
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 Federal 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 state-level incentives to 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.
Until December 31, 2010, you can get a tax credit of up to 30% of cost up to $1,500 on the following items.
The work must be done on an existing home and this home must be your principal residence. Rentals and new construction do not qualify.
> Biomass stoves – Biomass includes wood, wood waste and residues (including wood pellets), plants , grasses, residues, and fibers.
> Advanced Main Air Circulating Fan – A fan which blows the air that your furnace heats up through the duct system.
> Air Source Heat Pumps – During the heating season, heat pumps move heat from the cool outdoors into your warm house; during the cooling season, heat pumps move heat from your cool house into the warm outdoors.
> Central Air Conditioning – I think we all know what these are!
> Gas, Propane, or Oil Hot Water Boiler – Heating units that use water circulated throughout the home in a system of baseboard heating units, radiators, and/or in-floor radiant tubing.
> Natural Gas or Propane Furnace – Uses the combustion of fuel and air to create heat.
> Insulation – Just what you think it is. The credit applies to weather stripping, spray foam, and house wrap.
> New Roofs – Metal roofs and asphalt roofs that reflect some of the sun’s rays.
> Gas, Oil, Propane Water Heater – Heats up the water for your home.
> Electric Heat Pump Water Heater – Heats up the water for your home.
> Storm Windows & Doors – These can enhance efficiency by creating another barrier from the weather outside.
Until December 31, 2016, you can get a tax credit of up to 30% of cost with no upper limit on the following items.
Existing homes & new construction qualify, as do both principal residences and second homes. Rentals do not qualify.
> Geothermal Heat Pumps – Similar to ordinary heat pumps but they use the ground instead of outside air to provide heating, air conditioning and, in most cases, hot water. VERY efficient.
> Residential Wind Turbines – Yep, turning the wind into energy to power your home.
> Solar Energy Systems – This includes both solar panels and/or solar water heaters.
Until December 31, 2016, you can get a tax credit of up to 30% of the cost, up to $500 per .5 kW of power capacity on the following item.
Existing homes & new construction qualify, and the home must be your principal residence. Rentals and second homes do not qualify.
> Fuel Cells – Not too common, especially in the U.S., a fuel cell is an electrochemical cell that converts a source fuel (usually hydrogen) into an electrical current.
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 tax rebates and credits whenever possible. They will save you some money and save us all some energy.
{ 1 comment… read it below or add one }
Colleges will play a huge role in our future energy endeavors as a country. It’s very important that our universities contine to train students for a greener future