Energy Green Living

7 Energy Tax Credits for Your Home

Want to save on your taxes and help the environment? Check out these tips on energy efficient home improvements that could reduce your cost of green home improvements. These federal tax incentives will point you in the right direction towards making your next home improvement one that’s good for the planet.

Biomass Stoves

Energy Tax Credit: $300

Biomass stoves burn plant- derived fuel to heat water or your home. Biomass is considered ‘carbon lean,’ as carbon emissions is significantly reduced when using biomass instead of fossil fuels. Furthermore, biomass can be sourced locally, which reduced emissions due to transportation, and generates low levels of atmospheric pollutants.

Biomass Stove

Air Source Heat Pumps

Energy Tax Credit: $300

Air Source Heat Pumps have the potential to deliver 1.5 – 3 times the amount of energy to your home than they use. As a result, they can significantly reduce your energy bill by efficiently heating your home.

Heat pump - external

Geothermal Heat Pumps

Energy Tax Credit: 30% of total cost (including installation) with no upper limit

Adding Geothermal Heat Pumps to your home could lower your electrical bill a staggering amount and also significantly reduce your home’s environmental impact, as it is installing Geothermal in the equivalent of planting 750 trees or taking two cars off the road. Even more good news—geothermal is now easier than ever to fit to every home.

geothermal

Residential Wind Turbines

Energy Tax Credit: 30% of total cost (including installation) with no upper limit

By adding a small wind turbine to your home, you could save big on your electric bill while also ensuring that your power is renewable and sustainable.

small wind turbine

Solar Panels

Energy Tax Credit: 30% of total cost (including installation) with no upper limit

Adding solar energy systems to your home is of course a great way to make your home sustainable. Installing solar water heaters or solar panels will provide your home with renewable energy without producing air or water pollution.

solar on house

Fuel Cells

Energy Tax Credit: 30% of total cost (including installation) with no upper limit

Fuel cells use chemical reactions to produce energy. They are a very efficient way to power your home, and have almost zero emissions.

fuel cells

ENERGY STAR Certified Home Improvements

Energy Tax Credit: $300 or 10% of cost
  • Central Air Conditioning
  • Gas, propane & oil hot water boiler
  • Gas, propane & oil furnaces and fans
  • Insulation
  • Roofs
  • Non-solar water heaters
  • Windows, doors & skylights

Water heater decisionWhen making choices on equipment for all of these installations, make sure to look for the ENERGY STAR label. This certification ensures energy efficiency, and is also a great way to find out how to efficiently install products at your home. More on the energy tax credits available for ENERGY STAR approved products can be found here.

energystar

For more information about state energy tax credits, visit energy.gov/savings.