Federal Tax Credit
$500 Federal Tax Credit for Energy Efficiency Improvements
The Federal Government has tax credits in place for consumers making home energy improvements, including insulation upgrades, and meeting certain requirements. The tax credit is 10% of the cost up to $500 or a specific amount from $50-$300. For insulation, the qualifications are:
- For existing homes only
- Must be the homeowner’s principal residence. New construction and rentals do not qualify.
- The primary purpose must be to insulate (example: insulated siding does not qualify).
- Products that air seal (reduce air leaks) can also qualify, as long as they come with a Manufacturers Certification Statement.
- Installation costs for insulation are NOT covered by the tax credit.
- Expires December 31, 2011
- for tax rebate on air conditioning systems follow this link http://www.cee1.org/resid/rs-ac/rs-ac-tax-credits.php3
For a quick link to the Federal Government’s Energy Star site and specifics about this tax credit go to Energy Star/Tax Credits. Please consult your tax advisor for more details.
Below are links to information on tax-related credits and incentives.
Federal Tax Credits for Energy Efficiency – Energy Star website
Information about federal tax credits for Energy Star rated appliances.
DSIRE – Database of State Incentives for Renewable Energy
Comprehensive source of state, local, utility and selected federal tax incentives that promote the efficient use of energy.
Energy Policy Act of 2005
Learn more about the Energy Policy Act of 2005 which created tax deductions and credits for the installation of energy efficient equipment.
Accelerated Depreciation (IRS)
This is a standard business deduction which allows you to recover your cost in business or income-producing property through yearly tax deductions.