If you’re shopping for new appliances, roofing, doors, windows, or insulation for your home, ENERGY STAR products can help you save money twice-over: first, by using less energy, and second, by qualifying you for federal tax credits.
Products That Use Less Energy
ENERGY STAR products are independently certified to save energy. They use up to 30% less energy than comparable products, which means your family could cut your electricity bill simply by upgrading to an ENERGY STAR product when you’re shopping for replacement appliances or building a new home.
Get Federal Tax Credits
In addition to the money you can save at home by using less energy, there are several federal tax credits available to families who purchased ENERGY STAR products in 2015 or who purchase them before December 31, 2016.
According to energystar.gov:
“The Consolidated Appropriations Act, signed in December 2015, extended the expiration date of tax credits for some energy efficiency measures that previously expired at the end of 2014. The eligible incentives cover residential energy efficiency improvements, builder incentives for energy efficient new homes, and energy efficient new and retrofitted commercial buildings for measures installed by December 31, 2015 (source).”
Three Federal Tax Credits for ENERGY STAR Products
There are three federal tax credits available that are valued at up to 30% of the cost of residential ENERGY STAR products like solar energy systems and wind turbines. Even everyday home products like windows and doors can earn you as much as 10% of the product’s value.
Credit #1: 10% of Cost for Residential Updates
The first tax credit is for 10% of the cost (up to $500) of products, or a value ranging from $50-$300, and it must be applied to an existing residential property (no new construction) that is your primary residence.
Qualifying products include biomass stoves, air source heat pumps, central air conditioning systems, hot water boilers, furnaces and fans, insulation, roofs, water heaters, and windows, doors, and skylights.
Credit #2: 30% of Cost for Existing Homes and new Construction
The second tax credit is for 30% of the cost of the product, with no upper price limit. Qualifying products include geothermal heat pumps, small residential wind turbines, and solar energy systems.
All of the other tax credits in this post expire December 31, 2016 except for the 30% tax credits for solar energy systems, which are available through December 31st, 2019. Solar energy system credit drops by 4% in 2020 and again in 2021, expiring in 2021.
Credit #3: 30% of Cost for Existing Homes and New Construction
Finally, a 30% federal tax credit is available for residential or microturbine fuel cells for existing homes and new residential construction, as long as the home is your principle residence.
To find out more about how your family can save energy and money by shifting to energy efficient products at home, visit energystar.gov.
Learn more about Missouri’s Electric Cooperatives, and how we work to provide safe, efficient energy to rural Missouri by following us on Facebook, Twitter, YouTube, and Instagram.
Posted on Fri, June 24, 2016
by Gus Wagner filed under