as energy efficient by Energy Star that qualify for eligible tax credits on your
primary residence include: • Central air conditioning • Air-source heat pumps • Gas, propane or oil boilers
• Natural gas, propane or oil furnace • Advanced main air circulating fans • Biomass stoves • Water heaters (non-solar) Each product tax credit can range from $50 to upwards of $300 and can certainly add up. All products must have been in use from December 31, 2017, to the end of 2021, which can be a great write-off for your 2022 taxes. For more information, visit www.energystar.gov.
Here comes the sun — and savings More and more homeowners are using renewable energy alternatives, relying on solar energy systems, fuel cells, small wind turbines and geothermal equipment for electricity. And federal, state and local governments are rewarding citizens for choosing cleaner home processes by implementing tax benefits for those who invest in natural resources to power up their lives. In 2006, the federal solar Investment Tax Credit (ITC) was established. You can qualify for the ITC for the tax year that you installed your solar panels, as long as: • The system is new or being used for the first time between January 1, 2006 and December 31, 2023 • It generates electricity for a home in the U.S. that you own outright • It’s located in your primary or secondary U.S. residence Additionally, this past year, the ITC provided a 26% tax credit for systems installed between 2020 and 2022. The credit reduces to 22% and will end in 2023 unless Congress reinstates the ITC. (The IRS does allow a taxpayer to claim a section 25D tax credit for purchasing a portion of a community solar project, as well). Under the Consolidated Appropriations Act of 2021, the renewable energy tax credits for fuel cells, small wind turbines and geothermal heat pumps feature a gradual step down in credit value, the same as those for solar energy systems. Existing homes
Which home improvements qualify for energy tax credits? It’s not just your home’s air conditioner or water heater that may qualify for federal tax credits. Residential energy-efficient improvements that fall under your home’s envelope — the term for physical barriers that separate the inside conditioned space from the outside unconditioned space — and meet Energy Star standards also can reduce your tax load. Some tax credits include: • Windows, doors and skylights: If you replaced any windows, doors or skylights — or installed new ones that have earned the Energy Star — you are eligible for a tax credit of 10% of the cost (not including installation) on up to $200 for windows and skylights and up to $500 for doors. You can also claim the credit if you installed a window or door where one didn’t exist prior. • Roofs (metal and asphalt): Roofing materials that meet Energy Star requirements can qualify for a credit of 10% of the cost up to $500, not including installation. • Insulation: Typical bulk insulation products, such as batts, rolls, blow-in fibers, rigid boards, expanding spray and pour-in-place, can qualify for 10% of the cost, up to $500 (not including installation costs). • Products that air seal: Products that reduce air leaks can also qualify, as long as they come with a Manufacturer’s Certification Statement.
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IN YOUR CORNER ISSUE 10 | 2022
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