2013 Energy Tax Credits: Go Big or No Credit for you
Energy Tax Credits in 2013 Remain the Same as 2012
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, you may be disappointed in 2013.
There still are energy tax credits in 2013, but you have to go big in order to get one, just as you would for a 2012 energy tax credit. Long gone are the days of spraying some insulation in your attic, replacing your windows or doors, and free-flowing caulk – with a government payout.
There are also no longer credits for high efficiency air conditioners, gas furnaces, and water hearters, as there was with the 2011 energy tax credit.
Unfortunately, all of these tax credits disappeared – probably due to the inability to Congress to agree on any sort of spending plan. It is doubtful that any sort of fiscal cliff spending deal would include additional energy tax credits.
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?