Did you make your home more energy-efficient last year? You may be eligible for tax credits when you file your return, according to home energy evaluator Homeselfe.
"If you upgraded your home in 2015 by adding insulation—one of the most cost-effective upgrades you can make—you already know you are saving on your utility bills every month, plus you may be eligible for a tax credit on that investment," says Ameeta Jain, co-founder of Homeselfe. "Not taking advantage of that is throwing away your hard-earned cash.”
Jain explains that there are two types of major tax credits available to homeowners: the Residential Energy Efficient Property Tax Credit, which benefits those who have incorporated renewable energy features into their home, and the Nonbusiness Energy Property Tax Credit, which benefits those who have installed materials that meet the U.S. Department of Energy’s energy efficiency standards.
Homeowners who have invested in energy-efficient upgrades, such as fuel cells, geothermal heat pumps, small wind turbines, solar panels and solar-powered water heaters, may be eligible for the first credit. Homeowners who have invested in energy-efficient improvements like insulated roofing, windows and doors may be eligible for the latter.
Tax credits up to $500 are also available for some improvements, such as installing advanced, main air-circulating fans, a biomass stove, an energy-efficient HVAC system or water heater, insulation, or metal or asphalt roofing.
Reprinted with permission from RIS Media. (c)2016. All rights reserved.