Recently, a lot of our customers have been asking us about the new Federal tax credits for the purchase of energy efficient equipment. It’s worth going over, as this program can provide significant tax savings for homeowners who install qualified heating and cooling systems in their homes before the designated deadlines. Terms vary, depending on the kind of system or product you install, and you must provide documentation from a qualified contractor that an energy efficient system was put into service during the eligible time period.
There are 3 basic categories within the program:
- Tax Credit- 30% of the cost, up to $1,500
Expires December 31, 2010. This credit applies to existing homes and principle residences only. It cannot be used for new construction and rentals. Qualifying equipment/products includes: high-efficiency HVAC (labors + material), biomass stoves, windows, doors, insulation, roofs and water heaters. Depending on product, both labor and product is covered. In some instances, just the product is covered.
- Tax Credit- 30% of cost with no upper limit
Expires December 31, 2016. This credit applies to existing homes and new construction, and both principle and secondary residences, but notrentals. Qualifying equipment includes: geothermal heat pumps, wind turbines, solar systems
- Tax Credit- 30% of cost, up to $500 per .5 kW of power capacity
Expires December 31, 2016. This credit applies to existing homes and new construction. Secondary homes and rentals do not qualify.
Qualifying equipment includes: residential fuel cells and microturbines
As you can see from the list of qualified equipment, the Federal government wants to encourage homeowners to install high-efficiency heating and cooling equipment in their homes. To get these tax credits, make sure you understand which products and equipment meet the government’s criteria. You might be surprised at how many home comfort items do not qualify, so check with your contractor before you purchase. We can help you make the most of this rare opportunity to save money and improve your home’s energy efficiency at the same time. And remember, the clock is ticking on this program! For most people, these tax credits expire this year, so take advantage of this incentive. To claim credit – you must have a certificate from your contractor. Make sure you get this prior to paying your final bill.
For more information about the Federal tax credits, visit http://www.energysavvy.com/rebates/OH/.
P.K. Wadsworth services the Greater Cleveland, OH area including cities Chagrin Falls, Shaker Heights, Eastlake or anywhere in between. To get started, check out our website.