2013 Energy-Saving Tax Credits: Part 1 of 3
The new year, 2013, appears to be the year of energy tax credits.
Blanketed into the American Taxpayer Relief Act of 2012, these credits are geared toward stimulating the green energy sector. Many of this year’s tax credits are extensions of current credits or revitalizations of those previously offered in 2012.
Providing homeowners with a credit for green investments, the residential energy property tax credit includes high-efficiency heating, cooling and water-heating appliances; energy-efficiency windows and doors may also qualify.
Homeowners taking advantage of renewable energy can qualify for savings of up to 30 percent of equipment cost; rentals and second homes are not eligible for these Consumer Energy Efficiency Tax Credits. The residential energy efficiency property credit is scheduled to remain available through 2016.
Over the next three weeks, PGI will outline this year’s energy-saving tax credits.
Tax Credit #1: Small Wind Residential Turbines
Wind turbines convert the wind’s power into electricity, collecting kinetic energy from the wind and putting it back into your home’s electrical system for efficient use. Small wind turbines used by homeowners have a lower energy output than large commercial turbines found on wind farms and can be as small as a refrigeration unit, caravan or fifty watt boat generator. To qualify for the small wind turbine tax credit, the turbine must have a nameplate capacity of no more than 100 kilowatts. This year, the wind energy generation market may have benefited the most with a one year extension on production tax credits. This tax credit includes installation costs.