Earn Tax Credits with Energy-Saving Improvements
Save big at tax time by improving your home’s efficiency with these energy-smart upgrades. Purchase and install any combination of qualifying products by December 31, 2010, and you’ll earn up to $1,500 in one-time tax credits as you expand in-home comfort, reduce air pollution and lock in energy savings. All items net the equivalent of 30 percent of their cost in credits, and some allow you to earn even more than the $1,500 standard cap!
Efficient heating and cooling
Keep your cool when utility bills arrive by installing a split or package air conditioning system, and warm up to savings with an air source heat pump. New guidelines mean your qualifying equipment will be 15-25 percent more efficient than that covered by the federal standard that went into effect in January 2006.
Solar energy systems
Go solar with a system that handles your home’s water heating or a photovoltaic array that provides no-cost electricity. To qualify for the 30-percent-of-cost tax credit, a solar water heating system must be responsible for at least half of a property’s energy and be certified by the Solar Rating and Certification Corporation. Photovoltaic systems must provide electricity for the residence and meet applicable fire and electrical code requirements.
Small wind energy systems and fuel cells
Harness the wind’s power with residential small wind turbines or install a residential fuel cell and microturbine system. You’ll earn an uncapped 30 percent of cost in tax credits for the wind turbine system, and fuel cells snag 30 percent of cost for up to $500 per .5 kW of power capacity.