By Quinn Korzeniecki (Originally posted on BPI.org)
The end of 2015 was a great time for residential energy efficiency and alternative energy.
In addition to extending the tax credits for solar power, Congress chose to continue offering incentives for homeowners to make energy efficiency upgrades to their homes and for builders and manufacturers to build more energy efficient homes.
Adding energy efficient products to your home may cost more up front than standard models, but you will make up for this initial cost and save more in the long run with lower energy bills.
Families living in an existing home as a principal residence are eligible to receive a 10 percent tax credit on the cost of high-efficiency heating, cooling and water-heating equipment products totaling up to $500. If you already claimed the tax credit in previous years (since 2006), you are ineligible for additional tax credits for any new equipment purchases.
According to EnergyStar, the Environmental Protection Agency (EPA) program that helps businesses and individuals save money and protect our climate through superior energy efficiency, the following equipment is covered:
This tax credit also applies to any energy efficiency improvements made to your home’s building envelope. Installation and labor costs are not covered. Following are some eligible improvements:
You can claim a tax credit for 10 percent of the cost of qualified energy efficiency improvements. However, limits do apply to these improvements, including:
Visit the Department of Energy’s website for more information on the Residential Energy Efficiency Tax Credit and take advantage of these incentives to make your home more comfortable, your family safer and healthier and to save money on your utility bills before it’s too late!