Energy Efficiency Tax Credits
Consumers who purchase and install energy-efficient heating and cooling equipment in existing homes can receive a tax credit for up to $500 for improvements “placed in service” December 31, 2011. See EnergyStar.gov’s Federal Tax Credits for Energy Efficiency for a complete summary of the qualifications and all the energy efficiency tax credits available to consumers.
Renewable Energy Tax Credit
Homeowners who install solar water heaters, geothermal heat pumps and wind energy systems are eligible for a tax credit of up to 30% of the cost, with no caps. Previously, caps on these types of projects ranged from $2,000 to $4,000. These tax credits are available through 2016, and both labor and materials qualify.
