What Qualifies for Energy Tax Credit?


If you’re a homeowner and you need to get an energy tax credit on improvements on your home, you need to understand what does and doesn’t qualify. You can qualify for a variety of improvements such as energy-efficient exterior windows, doors, and skylights, energy-efficient roofs, metal and asphalt, and roof products, insulation, energy-efficient heating, and air conditioning systems, and energy-efficient water heaters, natural, gas, propane, or oil and energy-efficient biomass stoves.

You may want to consult a professional to help you understand what does and doesn’t qualify such as Ace Plumbing in the greater Sacramento area. However, let’s try to understand a little bit more about energy tax credits here below:

Products that Qualify for a Tax Credit

Other products that also qualify for energy-efficient tax credits include central air conditioning with air conditioners recognized as energy star most efficient would you get a $300 tax credit. You can also get air source heat pumps that are energy star certified for a $300 tax credit. Also, you can get advanced main circulating fans that must use no more than 2% of your furnace’s total energy and you can qualify for a $50 tax credit.

Non-solar water heaters that meet energy star certification standards are eligible for a $300 tax credit and this $300 credit can also be claimed for other water heaters including gas or oil and propane. Also, units with an energy factor of 0.82 or more or a thermal efficiency of at least 90% qualify.

Other home improvements that you can use to qualify for federal tax credits include products that are sealed including weatherstripping spray foam in a can, designed to air seal. A general rule of thumb for these types of home improvement products is that you will save 10% of your total cost on the improvements in federal tax credits. You can save money to improve your whole home with a variety of products and get both refunds and energy tax credits.

Getting a Tax Credit or Refund

Getting tax credits doesn’t have to be difficult or hard, you just have to make sure you have receipts from all of your purchases for labor and materials when you get your improvements completed. When you file your taxes at the IRS, you will just document the expenditures that you made and you will get 10% of your total purchase price in energy tax credits.

For the energy star improvements, you will need to consult your contractor in order to be able to apply for these refunds. You can easily save hundreds all the way up to $500 in tax credits and even more in refunds for energy-efficient home improvements. If you are considering doing home improvements and taking advantage of an energy tax credit, getting the improvements completed byContact Ace Plumbing in the greater Sacramento area is a great idea because they will help you every step of the way.