As tax time approaches many of us are wishing we had taken advantage of some of the federal tax credits for energy efficiency in our homes. It may be too late for the 2009 filing, but now is the best time to plan for 2010.
While every incentive is not directly related to solar power or solar energy, all are incentives to help the consumer become more energy efficient.
The Emergency Economic Stabilization Act of 2008 included energy tax incentives for consumers. Some of the tax incentives that were scheduled to end after 2009 have been extended. Tax incentives are more valuable than tax deductions because the amount of the incentive is deducted before the consumer calculates his taxes. Tax deductions only allow for the amount to be deducted after the total calculation of taxes owed.
One of the most valuable tax incentives or tax credits is for home improvements that provide for more energy efficiency. The tax credit is for 30% of the home improvement up to a total of $1,500. This incentive has been extended through 2010. This is the year to make the home improvements.
What Qualifies for the 30% tax credit up to $1,500 through the year 2010?
- Biomass stoves
- Heating, Ventilating, and Air Conditioning (HVAC)
- Insulation
- Metal and Asphalt Roofs
- Non-solar Water Heaters
- Windows and Doors
What Qualifies for the 30% tax credit with no upper limit through the year 2016?
- Geothermal Heat Pumps
- Small (Residential) Wind Turbines
- Solar Energy Systems
For any of the previously enumerated tax incentives the updates must be in the principal residence and not a secondary home or rental property.
It is important to note that NOT ALL Energy Star Appliances qualify for the tax incentive. When in doubt contact your state energy department.
Additionally, tax incentives are available from each state in addition to the federal tax incentives. To check your state please CLICK HERE.
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