2013 Energy Tax Credits
Energy Tax Credits in 2013
If you were planning a modest home improvement update that would save you future energy costs and reduce your carbon footprint in the hopes that it would be partially funded by a home energy tax credit from the IRS, I have some pleasant news for you.
The tax credit will equal 10% of cost up to $500 or a specific amount from $50–$300 for the following eligible items:
- Biomass Stoves: $300 credit for stoves with an efficiency of 75%+
- HVAC Air Circulating Fan: $50 for fans that use less than 2% of furnaces energy
- Central Air Conditioning: $300 for Split Systems: with SEER ≥ 16 and EER ≥ 13, or package systems with SEER ≥ 14 and EER ≥ 12
- Gas, propane, or hot water boiler: $150 with AFUE ≥ 95
- Natural gas, propane, or oil furnace: $150 with AFUE ≥ 95
- Insulation: 10% of the cost, up to $500 (not including installation costs)
- Roofs: 10% of the cost, up to $500 (not including installation costs) on metal roofs with appropriate pigmented coatings and asphalt roofs with appropriate cooling granules that also meet ENERGY STAR requirements.
- Gas, Oil, or Propane Hot Water Heater: $300 with Energy Factor ≥ 0.82 OR a thermal efficiency of at least 90%
- Electric Heat Pump Water Heater: $300 with Energy Factor ≥ 2.0
- Windows, Doors & Skylights: 10% of the cost, up to $500, but windows are capped at $200 (not including installation costs). Must be ENERGY STAR qualified.
The 2014 energy tax credits include these items now as well. They will also still cover the big hitter tax credits, which I’ll cover next.
30% Energy Tax Credits in 2013
What remains for energy tax credits in 2013 is nothing to scoff at, if you have some decent savings to tap into. There are 30% tax credits on significant energy installation projects that those with the greenest thumbs may be interested in.
Three of them have no upper limit and include installation costs on primary and secondary homes (excludes rentals):
- geothermal heat pumps
- solar (includes photovoltaic and solar water heaters)
- small wind turbines (residential only and no more than 100 kW)
One of them has a cap of up to $500 per 0.5 kW of power capacity and only principal residences apply (installation costs are also included):
- fuel cells (efficiency of at least 30% and capacity of at least 0.5 kW)
All must meet Energy Star requirements in order to be eligible for the tax credit.
For more info, check out the Energy Star Energy Tax Credit site.
Energy Tax Credit Discussion:
- Have you or will you take advantage of a 30% energy installation project tax credit?
- Do you think the government should expand or eliminate energy tax credits to help reduce our dependence on fossil fuels?