Homeowners making energy efficient or renewable energy upgrades may now be eligible for additional incentives as part of the Stimulus Package.
This year you have a chance to get some money back on your energy efficiency purchases! Many might not have noticed that the American Taxpayer Relief Act of 2012 includes extensions for energy efficiency tax incentives that expired at the end of 2011.
The bill extends tax credits for energy efficiency upgrades to existing homes, including purchases made in 2012 and 2013. These residential tax credits cover up to 10% of the cost for energy-efficient new central air conditioners, heat pumps, water heaters, windows, insulation, ENERGY STAR metal roofs, and other products. These credits are available for products and upgrades that meet minimum efficiency levels. The credit is capped at $50–$500 depending on the type of equipment installed.
Click here for an overview of the tax incentives.
Several tax incentives were extended and changed through the American Taxpayer Relief Act of 2012, also known as the “fiscal cliff bill,” which passed Tuesday, Jan. 1, 2013. The residential tax incentives for existing homes, including purchases made in 2012, were extended through 2013. These incentives include the following measures:
- Central Air Conditioning Units: Until December 31, 2013: Central air conditioning units and air-source heat pumps must meet the highest tier standards set by the Consortium for Energy Efficiency (CEE), which in most cases requires a Seasonal Energy Efficiency Ratio (SEER) of 16. SEER measures performance throughout the cooling season. The credit covers costs up to $300.
- Water Heaters: From January 1, 2012 through December 31, 2013: the credit covers costs up to $300. The specifications are as follows: *Heat pump water heaters: Energy Factor of at least 2.0 required.