2014 Energy Tax Credit Details
Energy Tax Credits
Before I cover the 2014 energy tax credits, first an update on last year’s energy tax credits that you might not have known about and could help you out on your tax return.
Remember a few years ago when there were awesome energy tax credits on purchases that ranged from windows, doors, and roofing to furnaces, central air conditioning, and more?
Those credits went away at the end of 2011 – however they were were restored last year, in January, as part of the fiscal cliff deal. They were also retroactively applied to items purchased in 2012. They have now re-expired for purchases made after December 31st of last year.
They included tax credits equal to 10% of cost up to $500, or a specific amount from $50–$300 for the following eligible items:
- Biomass Stoves
- HVAC Air Circulating Fan
- Central Air Conditioning
- Gas, propane, or hot water boiler
- Natural gas, propane, or oil furnace
- Gas, Oil, or Propane Hot Water Heater
- Electric Heat Pump Water Heater
- Windows, Doors & Skylights
Note that it can’t be any old product off that list – each must satisfy certain energy efficiency requirements to be eligible for the credit. More on those requirements can be found on the Energy Star Energy Tax Credit site.
There are also big hitter tax credits, which I’ll cover next.
There has been a push by one half of Congress (I’ll let you guess) to extend the previously listed tax credit in to 2014, but that has not yet been approved and seems unlikely at this point.
On to the credits that will, in fact, be continuing into 2014.
30% Energy Tax Credits in 2014
What remains for energy tax credits in 2014 are significant 30% tax credits on higher cost energy installation projects.
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.
2014 Energy Tax Credits Discussion:
- Have you or will you take advantage of a 30% energy installation project tax credit? Tell us about your project costs and tax credit savings.
- Are you hoping last year’s credit get extended into 2014?