By Wiss Associate
If you made your home a little more energy efficient last year, you may qualify for a tax credit on your federal income tax return. In previous years, to encourage clean energy conservation in residences of Americans everywhere, the Department of Energy and the EPA have worked collectively to develop Energy Star, a program designed to promote business and home energy efficiency by deeming appliances like solar panels, air conditioning and heating systems, and windows tax deductible. In turn, the program saves homeowners a tremendous amount of money and reduces the amount of greenhouse gas emissions in the atmosphere. Equipment that qualifies for the tax credit include:
- Geothermal heat pumps and solar panels that produce electricity for the household. Using these appliances can qualify you for a 30% tax credit of your total cost. This credit is available through 2019 but will shrink each year subsequent and will halt after 2021. Additionally, this credit is solely available for improvements you make to your primary home, not secondary or summer home.
- Solar-powered water heaters used in the household. No less than half of the residence’s water-eating capacity has to be solar. Hot tub and swimming pool solar heaters do not apply.
- Wind turbines that generate up to 100 kilowatts of electricity for solely residential usage.
- Fuel devices relying on renewable resources, typically hydrogen, producing power for the household. The cell must create up to 0.5 kilowatts of power.
Be aware–residents may not receive more than $500 in full for all their clean energy credits. In order to receive each tax benefit, you must fill out the IRS Form 5695, enter the credit quantity and transribe it on your 1040. Save your receipts for each energy appliance as well the Manufacturer’s Certification Statement just in case you need to prove your claim.
If you obtained a renewable energy credit in previous years, you can consult a tax professional or visit www.irs.gov to uncover your outstanding eligibility for these credits.
If you would like more information on this topic, contact us today at 973-994-9400 or at hello@wiss.visioncreativegroup.com.