One of the most valuable tax credits available to homes and businesses is the solar energy tax credit. It’s a tax credit that applies to solar-powered hot water and panel systems. It’s worth up to 30% of the total cost of purchase and installation.
At the end of the year 2015, Congress extended this credit for four years. That means it’s currently eligible until the end of 2019 in its current form. It will gradually phase out until 2022, when homeowners can no longer claim the solar tax credit and it’s only worth 10% to businesses.
Like with other improvements, there’s also tax credits in your state and cash rebates.
Are There Any Other Rewards for Energy Efficiency Upgrades?
Your local utility may also offer a financial incentive for becoming more energy efficient. Utilities may provide you with rebates when you make energy efficient purchases, such as building materials, electronics, pool pumps, water heaters, and appliances.
Many of these rebates are provided immediately after purchase. Others are only provided when you can prove that the installation has been completed.
Rebates can be as low as $10 for energy efficient lightbulbs to more than $1,000 for larger pieces of equipment.
Visit the Department of Energy’s website for a full database of different energy tax credits and rebates.
Tax Credits for Energy Efficiency
Sadly, energy efficiency tax credits from the Federal government expired back in 2016. But that doesn’t mean you can’t get any type of tax credit.
A lot of states continue to offer tax credits when you upgrade your home with new energy efficiency installations. These tend to come in the form of property tax exemptions when you purchase or install certain types of equipment.