It’s tax season and that means we’re all looking for ways to save on paying taxes. One way homeowners are saving is with home energy tax credits. The federal government is offering big savings this year and next on energy-efficient changes to your home. If you’ve made some energy-saving renovations, or you have plans to do so, check out these 5 ways homeowners can receive energy tax rebates.
1. If you upgrade your heating, ventilating or air conditioning (HVAC), you are eligible for 30% off the cost of the unit and installation costs, up to $1,500. It’s probably the most popular energy tax credit since many homes are in need of an energy-efficient HVAC uprade.
2. Replacing your home’s roof is another way to take advantage of the home energy tax credits. As long as your roof is Energy Star-approved, and is either metal or asphalt, the government will chip in and help you improve your home. This will help save money on your next energy bill. Much like the first item on our list, the tax credit is structured in the same manner.
3. Installing new insulation is yet another example of energy-saving home improvements that you can make. The tax credit is also structured like the first two items, but doesn’t cover installation costs. However, you can do the installing youself (provided you read up on it beforehand). Insulation such as caulking, weather stripping and various foams are covered.
4. If you’re really ambitious, then you can take energy efficiency to the next level and install solar power. The federal government is offering a 30% tax credit, with no limit, on your solar power energy upgrade. Take your time and think about it, as you have until 2016 to take advantage of this energy tax credit.
5. Finally, geothermal heat pumps are another way for homeowners to get energy tax credits. Install one of these units in your home and get the same 30% tax credit as the previous item on this list. Highly recommended and very effective, you can’t go wrong with this HVAC option, either.