The end of the year is approaching, believe it or not. The U.S. Department of Energy recently urged homeowners to take advantage of tax credits for your energy-efficient purchases before this year ends. December 31, 2013 will in fact be the last day that you will be able to utilize some of the Extended Federal Tax Credits for Energy Efficiency. These tax credits help you make your home more energy-efficient while simultaneously saving you money. You will not only receive tax credits to cut costs, but the energy efficient measures will reduce your monthly energy costs this winter.
For all of those procrastinators out there, this deadline serves as the perfect motivation to install insulation, air seal, upgrade your heating system, and explore other energy-conserving measures. These tax savings offer a perfect start to the New Year; resolve to save energy and money.
If you purchased select energy-efficient products during 2012 or 2013, you could be eligible for a tax credit of 10% of the cost, up to $500. Or, you could receive a specific amount of tax credit from $50-300 for the six following energy efficient categories:
- Biomass stoves
- HVAC systems
- Roofing—metal and asphalt
- Water heaters—non-solar
- Windows and doors.
To qualify for credit, the above products must have been installed in an existing home or in your primary residence on or prior to December 31, 2013.
The good news continues: although the previous available tax credits will expire soon, homeowners can still apply for more tax credits for the next three years. The following product categories are eligible for a tax credit of 30% of the cost with no maximum limit. These tax credits will not expire until December 31, 2016:
- Geothermal heat pumps
- Small, residential wind turbines
- Solar energy systems.
These tax credits can be used on both new homes and on existing homes, and on both principal and secondary residences. Rented homes do not quality.
Finally, your new or existing primary home may be eligible to receive tax credit for 30% of the cost—up to $500—for every .5KW of power used to power residential fuel cell and microturbine systems. This offer goes through December 31, 2016.
In order to apply for and receive any of these tax credits, you must submit the 5695 form with your 2013 taxes. You have a lot on your plate at this time of the year, but applying for these tax credits will be a gift that will keep giving. Your home offers a warm environment for you in the winter, so it makes sense that you want to take care of it. The outside world offers an environment for your home, and for you, so doesn’t it make sense to protect it? Reduce your environmental impact, while saving your wallet in the process.