Energy Subsidies and Tax Credits are Coming to an End

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  • There are a lot of energy subsidies and tax credits available through the Federal government. So many, that it can be hard to keep track of which ones apply to you and when they’re coming to an end.

    Most of the residential renewable energy tax credits will expire at the end of this year.

    The American Recovery and Investment Act of 2009 allowed individual homeowners to claim a credit for 30{9fbccc156f5725be75a91a7362b6154d0906bc3e0dc58094d3ca1c8a1bab6a64} of the cost for the installation of the following qualified products:

    • Energy-efficient exterior windows, doors and skylights
    • Energy-efficient heating and air conditioning systems
    • Insulation
    • Water heaters (natural gas, propane or oil)
    • Roofs (metal and asphalt)
    • Biomass stoves

     

    Initially this tax credit expired at the end of 2014 but the Consolidated Appropriations Act, signed in December 2015, retroactively renewed this tax credit effective January 1, 2015 and expiring again on December 31, 2016. Any qualified equipment installed in 2015 or 2016 is eligible for this credit.

    The part that we’re most interesting in pointing out is as follows:

    This credit applies to energy efficiency improvements in the building envelope of existing homes and for the purchase of high-efficiency heating, cooling and water-heating equipment. Efficiency improvements or equipment must serve a dwelling in the United States that is owned and used by the taxpayer as a primary residence. The maximum tax credit for all improvements made in 2011 – 2016 is $500. The cap includes tax credits for any improvements made in any previous year. If a taxpayer claimed $500 or more of these tax credits in any previous year, any purchases made in 2011 – 2016 will be ineligible for a tax credit.

    If you are planning to switch over to a high efficiency ductless heat pump, you should definitely do so before the end of the year! Call us to find out how we can help you save money on your monthly heating bills, give you quiet and discreet heating through the whole year, and earn you a tax credit at the end of the year!