Tax Credits Now Available for “Energy-Efficient” Home Products
No income level restrictions
Building or remodeling a house this year? Upgrading fixtures and appliances in your home? If so, go with "energy-efficient" products and get tax credits equal to 30% of their purchase price (up to $1,500). The credit is not tied to income levels (everyone qualifies) and doesn’t count toward the Annual Minimum Tax (AMT).
Products that qualify must have certain energy ratings and be used for principal residence only:
- Furnaces (natural gas, propane and oil): Natural gas and propane units must have an annual fuel utilization efficiency rate of 95 or higher, and oil furnaces must have 90 or higher.
- Hot Water Boilers (natural gas, propane, or oil):Must have annual fuel utilization efficiency rates of 90 or higher.
- Electric Heat Pumps and Central AC Units: Must have the highest efficiency tier established by the Consortium for Energy Efficiency (CEE).
- Water Heaters (natural gas and propane): Must have an energy factor of at least .82 or a thermal efficiency of at least 90%.
- Insulation Materials: Materials that are specifically and primarily designed to reduce the home's heat loss or gain, including exterior caulking and weather-stripping, can qualify. Does not include dry wall or siding.
- Exterior Windows, Doors, and Skylights: Must have a "U-Factor" (measure of heat kept in) of .30 or below and an SHGC (measure of heat kept out) of .30 or below.
A further tax credit of 30% of purchase price without limit is available for high-tech improvements like solar panels, geothermal heat pumps, and wind turbines.
Talk to your CPA if you have questions or contact our Advanced Tax Solutions Group for other tax deductible information.