As Winter Approaches Think Tax Credits for Energy Efficiency
Friday, October 23, 2009 at 05:52PM Not only is winter quickly approaching but so is tax season and people are talking about tax credits for energy efficiency. I thought it would be worthwhile to highlight some of the state, federal and even local energy efficiency and weatherization tax incentives that are out there for readers.
First up is a pretty simple one. It is a federal tax credit of up to $1,500 for homeowners who install energy efficient products in their home. While this can involve a substantial weatherization project like new windows or insulation, it can also be used for something as simple as purchasing an energy efficient storm door or hot water heater.
The tax credit is equal to 30% of the qualified energy efficiency expenses paid by the home owner, but it is capped at $1,500 for improvements made during 2009 and 2010. This means that you can spend up to $5,000 during this two year period on any number of products and get 30% ($1,500) back as a tax credit. The energy star website is the place to go to find out if a particular produce qualifies. So don't wait until this winter has come and gone before you make the investment, now is the time.
I'll be doing a bit of series on these credits for homeowners, businesses and institutions so check back here for more updates.
Dave Gurtman
Reader Comments (2)
Geez, I hope my accountant knows this. We put in a more efficient hot water heater last year. What about solar panels?
pete
Solar Panels have an even better credit, up to 30% of the cost of the system with no cap and it lasts until 2016. This for both photovoltaic panels and solar hot water. The energy star website here (energystar.gov/taxcredits) is the place to find out info on all types of efficency measures.