Did you make any energy saving improvements to your home in 2015? If so, we hope you saved your receipt. Tax season is looming, and if you want to take advantage of any energy-efficient tax credits, you must have proof of purchase. Also, your product must be "placed into service" by December 31, 2016. Sound interesting? Here's a list of qualified products and how much your credit is worth.
Energy tax credits can save you a bundle, especially when you opt to install energy-efficient boilers, furnaces, heat pumps, and hot water heaters. Gas, propane, or oil hot water boilers get a tax credit of $150 with an Annual Fuel Utilization Efficiency (AFUE) rating equal to or more than 95 (90 in the case of oil hot water boilers). Natural gas, propane, or oil furnaces also receive $150 tax credit with AFUE more than or equal to 95. Electric water heaters get a $300 tax credit only if they have an Energy Factor more than or equal to 2.0. For any gas, oil, or propane hot water heaters you can receive $300 as long as they have an energy factor or 0.8 for storage heaters and 09 for any other water heaters. Both must have a thermal efficiency of at least 90%. Air source heat pumps get a maximum tax credit amount of $300 for either a split or package system. Split systems must have a HSPF factor greater than or equal to 8.5, an EER rating greater than or equal to 12.5 and an SEER rating greater than or equal to 15. For air source heat pumps from a package system, it must have an HSPF rating greater than or equal to 8, an EER rating greater than or equal to 12, and an SEER rating greater than or equal to 14.
What's not to love about improved comfort, performance and efficiency when it comes to your air conditioning system? Receive a tax credit amount of $300 for any Energy Star qualifying air conditioning split system with a Seasonal Energy Efficiency Ratio (SEER) more than or equal to 16 and an Energy Efficiency Ratio (EER) more than or equal to 13. Package systems qualify if they have a SEER rating more than or equal to 14 and an EER rating more than or equal to 12.
2015 Federal Tax Credits
Tax credits apply to Energy Star certified solar energy systems, small wind energy systems, and fuel cells installed before the end of 2016. Claim up to 30% of the cost with no maximum limit on the credit your receive (including installation costs). Regarding solar water heating products, half of the generated energy must come from the sun. For small wind energy systems, eligibility requires a nameplate capacity of no more than 100 kW. Eligibility for all tax credits extends to second homes except for fuel cells. Your fuel cell property must have an efficiency of at least 30% with a capacity of at least 0.5 kW to qualify. You are eligible to receive up to $500 per 0.5 kW of power.
Nonbusiness Energy Property Tax Credit
The credits don't stop there. Congress extended the Nonbusiness Energy Property Tax Credit until December 31, 2016. Receive a tax credit for up to 10% of your purchase price on qualified products up to $500 for all your home improvements. If you received energy credits between 2005-2011, then you will have to subtract the amounts received from 2015's "lifetime" credit cap. Here's the maximum amount you can claim for each energy-saving product:
- $300 for biomass stoves
- $50 for advanced main air circulating fans
- $300 for air source heat pumps
- $300 for central air conditioning
- $150 for gas, propane, or oil hot-water boilers
- $150 for gas, propane, or oil furnaces
- $300 for gas, propane, oil, or electric heat pump water heaters
- $500 for energy-efficient doors (installation costs do not count)
- $500 for energy-efficient skylights (installation costs do not count)
- $200 for energy-efficient windows (installation costs do not count)
- $500 for insulation (installation costs do not count)
- $500 for metal or asphalt roofing (installation costs do not count)
Take advantage of these temporary tax credits before it's too late. A little research on the product requirements means big savings for you this tax season.