Homeowners have opportunities to reduce their tax burden for adopting sustainable practices at the state and local level with incentives including tax credits, rebates and renewable energy certificates.
Tax tips for energy-efficient homeowners Tips to help you get the most out of being green during tax season Apply for energy-efficient tax credits using IRS Form 5695: Residential Energy Credits
and new construction qualify, as well as principal residences and second homes. Homeowners have additional opportunities to reduce their tax burden for adopting sustainable practices at the state and local level with incentives including tax credits, rebates, and renewable energy certificates, which vary by location. Plus, some homeowners who install solar systems may qualify for a tax exemption, which can reduce taxable income liability. Homeowner green watch Taxes can be complicated, but you don’t want to miss the chance to gain some tax savings due to your energy-efficient ways at home. The tax benefits for creating energy-efficient homes are fluid as technology changes, interest in greener lifestyles becomes more mainstream and federal laws are amended and enacted. Take advantage of the current incentives that benefit your tax status with equipment and upgrades that make a difference to everyone.
Visit Energy Star’s website to learn what energy-
saving equipment qualifies for tax credits under the federal program’s guidelines
Keep equipment and product receipts and
other documentation such as Manufacturer’s Certification Statements (found on manufacturer’s website or on the product packaging), and keep them with your tax records to back up your claims of green home practices in the event of an audit
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