If you want to claim federal tax credits in order to make your home more energy efficient, you still have some time.
By incorporating some energy efficient appliances in your home, you can receive up to $1,500 in federal tax credits. Moreover, if you opt for multiple upgrades, you could get more than $10,000, although you’ll also be spending quite a bundle.
However, do read the fine print and find out all the details before you decide about any credit option. There are many federal tax credits that apply only to your primary residence and to existing homes. Furthermore, not all Energy Star appliances qualify, so you will have to do some research, as all the chosen products have to meet specific criteria.
In order to claim 30%, or up to $1,500, for qualified improvements this year and next year , the improvement has to be specific to these areas:
- biomass stoves
- windows
- doors
- HVAC – heating, ventilation, air conditioning insulation
- metal or asphalt roofs
- non-solar water heaters
Do keep in mind that you can only include the installation costs for biomass stoves, HVAC and water heaters.
Also, by installing residential fuel cells or microturbine systems in an existing or new home, you can get a deduction of 30% of the total cost, up to $500 per 0.5 kilowatt of power capacity, through 2016.
You can get the biggest tax breaks by installing geothermal heat pumps, small wind turbines or solar energy systems. This way, you will be able to claim 30% of the costs (including installation) through 2016. This credit will be available for existing homes, second home and new construction.
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