4 Affordable, Energy-Saving Tax Credits For 2016
Have you taken significant steps to practice energy efficiency within your home? You’re in luck. Existing and new construction homes can qualify for tax savings of 30 percent of equipment cost! To qualify, the home must be your principal residence. Rentals and second homes are not eligible for the Consumer Energy Efficiency Tax Credits. For more information on these credits, visit the ENERGY STAR Federal Tax Credits for Energy Efficiency’s website. Note, not all ENERGY STAR certified products qualify for a tax credit.
Solar Energy Systems
Solar power is the conversion of sunlight into electricity using photovoltaics (directly) or concentrated solar polar (indirectly). Florida, specifically, is a wonderful place to utilize solar power to frequent sunshine, allowing homeowners to take advantage of this natural resource. Solar water heaters use the sun’s thermal energy to heat water to use in your home, coming in a wide variety of designs and prices. All solar water heaters include a collector and storage tank. To qualify, at least half of all energy generated must come from the sun and be certified by the Solar Rating and Certification Corporation (SRCC) or a similar corporation endorsed by state government. The solar energy tax credit includes installation costs.
Geothermal Heat Pumps
Similar to ordinary heat pumps, geothermal heat pumps instead use the earth’s in-ground natural heat to provide heating, air conditioning and hot water in your home. All geothermal heat pump components certified by the manufacturer are covered in the tax credit, however some add-on components may not be covered, including emergency back-up systems and ducts. In order to qualify, geothermal heat pumps must be certified by ENERGY STAR. The geothermal heat pump tax credit includes installation costs.
Fuel Cells (Residential Fuel Cell and Microturbine System)
A safer, cleaner and more efficient alternative to gasoline and fossil fuels, Residential Fuel Cells and Microturbine Systems enable the use of hydrogen technologies to power your home. A fuel cell is a device that converts the chemical energy from a given fuel into electricity through a chemical reaction with oxygen or another oxidizing agent. Having the potential to revolutionize the way we power our homes and the nation, Residential Fuel Cells and Microturbine systems have recently become a more affordable and practical approach to saving energy. The fuel cells tax credit includes installation costs.
Small Wind Residential Turbines
Collecting kinetic energy from the wind, wind turbines convert the wind’s power into electricity, putting it back into your home’s electrical system for efficient use. Small wind turbines have a lower energy output than that of large commercial wind turbines found on wind farms and may be as small as a fifty watt generator for boats, caravans or a small refrigeration unit. To qualify for the small wind residential turbine tax credit, the turbine must have a nameplate capacity of no more than 100 kilowatts. The small wind residential turbines tax credit includes installation costs.
Questions? Feel free to ask.