While you are scrambling to find your receipts and pulling your hair out trying to figure what you can claim on your taxes; your home may be helping you out more than you know. With the push for more energy efficient homes, the government may have tax credits to offer, if you installed any of the following home energy updates.
#1: Roofing Replacement
If you replaced your roofing with metal or asphalt, you are eligible for a tax credit because these materials reduce the amount of heat gathered by the roof. As a result, your HVAC system works less, saving energy.
#2: Biomass Stove
The purpose of a biomass stove is to burn plant-based materials. It reduces the amount of electrical and natural gas usage in your home, especially during winter months. If you installed one in your home, you may be eligible for a $300 tax credit.
#3: Energy Efficient HVAC System
Replacing your old HVAC system with one that is specifically labeled energy efficient makes you eligible for a tax credit. The newer HVAC systems use less energy. Not only will one help Mother Nature, but it will also reduce your electric bill.
#4: Water Heater
Just like replacing the HVAC system, replacing your water heater is a tax credit. A new water heater labeled energy efficient will effectively decrease energy usage and cost. Fortunately, the Energy Star website is very specific on what appliances do and do not qualify for a tax credit. It is a great place to determine what water heaters you have to choose from.
#5: Solar Energy System
The IRS will commend you for your valiant effort to better care for the environment. The effects of solar energy are astounding and can do wonders for your home and your energy bill. Installing any of the following solar energy systems may make you eligible for a tax break:
- Solar Panels
- Geothermal Heat Pumps
- Residential Wind Turbines
- Fuel Cells
The IRS allows you to claim up to 30 percent of the total cost of the solar energy system you have installed.
Properly insulating your home is one of the best ways to keep energy costs down. If you kept up with this repair, you may be eligible for a tax credit up to $500.00.
Conclusion: The Bottom Line
Every time you have a repair done or install a new appliance, save the receipt. This will help you prepare for tax season. Having proof that energy saving home improvements were made thanks to the receipts you kept will save you from an audit. For more information, or assistance with making your home more energy efficient, talk to a company like Etheridge Electric Company Inc.Share