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Tax Credits for Energy Efficiency Set to Expire – Act Now

Federal tax credits for energy efficiency are a tangible incentive for homeowners to upgrade to eco-friendly options for their homes. Many of these credits are set to expire at the end of 2013. Act now to take advantage of these tax credits for energy efficiency. You can claim 10 percent of your purchase cost up to a certain amount, depending on the upgrade or upgrades you choose. The current credits include:

  • Biomass stove with a thermal efficiency rating of 75 percent or higher: Claim a credit of as much as $300.
  • Air-source heat pump that meet efficiency requirements: Take a $300 credit.
  • Central air conditioning that meets efficiency requirements: Take a $300 credit.
  • Natural gas, propane or oil furnace with an annual fuel utilization efficiency of 95 percent or better: You can claim as much as $150.
  • Insulation: Claim up to $500, depending on the extent of your project.
  • Roofing with pigmented coatings or cooling granules: Claim $500.
  • Gas, oil, or propane water heater with an energy factor of at least 0.82 or a thermal efficiency of 90 percent more. Take a credit of as much as $300.
  • Electric heat pump water heater with an energy factor of 2.0 or higher: Take a credit of as much as $300.
  • Energy Star-qualified windows, doors and skylights: Claim as much as $500 for doors and $200 for windows.

Installation costs are not included in these credits, so you will need to plan accordingly. These credits expire on Dec. 31. To apply for the credits, submit form 5695 with your taxes.

For more information about energy-efficient home upgrades, contact Ross & Witmer. Serving Charlotte-area homeowners, we provide innovative solutions for all your indoor spaces.