Energy Tax Credit
Energy Tax Credit
Energy Tax Rebate
As part of the US government’s endeavor to encourage Americans to go green, the IRS is offering incentives for purchasing energy-efficient products and renewable energy systems. If you buy certain energy-efficient products for your home or environmentally-friendly vehicles in the year 2011, you are entitled to claim a federal tax credit. While some energy tax credits are only available in 2011, others are valid until 2016. Here is a list of products that qualify for energy-efficiency tax credits.
Biomass Stoves
If you buy a biomass stove that has a thermal efficiency rating of 75% of more for your home, you can claim a federal tax credit of $300. This tax credit includes the cost of installation, and it is only available in 2011.
Heating, Ventilation, and Air-Conditioning (HVAC)
You will qualify for an energy tax credit of $300 if you purchase central air-conditioning or electric heat pumps. For purchases of furnaces and boilers, the tax credit is $150. If you buy advanced main air circulating fan, you can claim $50. These tax credits are also only valid in 2011.
Insulation
The IRS offers a federal energy tax credit for the purchase of insulation materials and systems that meet the requirements of the 2009 International Energy Conservation Code and Amendments. This credit is 10% of the cost of the materials and systems, with a limit of $500, and it does not include the cost of installation and labor.
Roofing
All metal and asphalt roofs that are Energy Star qualified are eligible for energy-efficiency tax credit. If you purchase these products, you can claim 10% of their costs, up to a limit of $500.
Non-Solar Water Heaters
A tax credit of $300 is available for the purchase of gas, oil, and propane water heaters, as well as electric heat pump water heaters. All Energy Star qualified gas tankless water heaters and heat pump water heaters are eligible for this credit.
Federal Energy Tax Credits
Windows, Doors, and Skylights
Energy Star labeled exterior windows, doors, and skylights qualify for an energy tax credit of 10% of their costs. Doors and skylights are capped at $500, and the limit for windows is $200.
Geothermal Heat Pumps
If you buy a geothermal heat pump for your home, you can claim 30% of the total cost of your purchase and installation. This credit has no upper limit, and it will be available until 2016.
Solar Energy Systems
For purchasing a solar water heating property or a photovoltaic system, you will be eligible for a tax credit of 30% of the total cost, including installation. There is also no limit for this credit.
Wind Energy Systems
Federal Energy Tax Credit
Residential small wind turbines with a nameplate capacity of 100 kilowatts or less qualify for energy-efficiency tax credit. The tax credit is also 30% of the total cost, without upper limit.
Federal Solar Investment Tax Credits
Fuel Cells
Tax credit for residential fuel cell systems is 30% of cost, and the limit is $500 per 0.5 kilowatt of power capacity.
Plug-In Electric Vehicles
You can also claim tax credit if you purchase a plug-in electric vehicle or a small neighborhood electric vehicle. Depending on the capacity of the battery system, you can avail of up to $7,500 worth of tax credit.
