If you’ve installed an Energy Star certified water heater, boiler, furnace, heat pump, biomass stove or air conditioning system in 2015, you may be eligible for a tax credit of 10% of the cost up to $500 or for a specific amount anywhere from $50 to $300. Whether you had us at Stan The Plumber do the installation, did it yourself, or had another company do the install, you may still qualify.
Encouraging both homeowners and commercial businesses to improve energy usage and efficiency, Congress has voted to extend the Residential Energy Efficiency Property Credit through 2016. This means you could potentially save quite a bit of money on specific improvements and updates around your home. And it’s not too late to apply!
Here’s some of what qualifies for federal tax credits:
- Water Heaters, non-solar — Tax Credit: $300
- Gas, Propane, Oil Hot Water Boiler — Tax Credit: $150
- Gas, Propane, or Oil Furnaces — Tax Credit: $150
- Biomass Stoves — Tax Credit: $300
- Air Source Heat Pumps — Tax Credit: $300
- Central Air Conditioning — Tax Credit: $300
- and other certain home appliances.
Going solar really does pay off
In addition to the above, the following solar systems provide a federal tax credit of 30% of the cost including installation with no upper limit:
- Solar Water Heaters
- Geothermal Heat Pumps
- Small Residential Wind Turbines
- Solar Panels (Photovoltaic Systems)
Tax credits for the above solar energy systems are available through December 31, 2019. After that, the credit decreases to 26% for tax year 2020; then drops to 22% for tax year 2021 and then expires December 31, 2021.
The deadline to file taxes for 2015 has been extended to April 18, 2016. If you’ve already filed and forgot or didn’t know about these federal tax credits you can always file an amended return.
It’s also important to know that you will need to use Form 5695 Residential Energy Credits. These deductions are only applicable to your primary residence, but in certain cases a secondary residence could qualify. If you’d like more detailed information regarding these tax credits check the ENERGY STAR website.
If you are interested in replacing your older, non-energy efficient appliances with a cost-saving Energy Star certified appliance, we can help you with that. Give Stan a call at (802) 233-5564 and we’ll set up a time to get together.