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Our staff in Rochester, MN will help you understand tax credits

Our staff in Rochester, MN will help you understand tax credits

Find out if the system you currently use, or one you'll soon install, qualifies for energy efficiency tax credits.

Federal energy efficiency tax credits

Under the Bipartisan Budget Act of 2018, signed February 2018, some tax credits for residential energy efficiency that expired in 2016 were renewed. Tax credits for non-commercial property energy are now available retroactively for purchases made to December 31, 2017. The source for the most up to date information on U.S. tax credits is:

https://www.energystar.gov/about/federal_tax_credits

Local energy tax credits and rebates

Tax credits and rebates may also be available at regional and local levels. To find out if you might be eligible, we recommend contacting your utilities company and visiting dsireusa.org to search the DSIRE Database of State Incentives for Renewables and Efficiency®.

Federal HVAC tax credits

In February 2018, the U.S. government renewed the 25C tax credit for high-efficiency heating and cooling equipment. This credit is offered as part of a larger energy-efficiency incentive for home improvements. A credit of 10% of the cost of qualified energy-efficient improvements. Qualified improvements include adding insulation, energy-efficient exterior windows and doors, and certain roofs. The cost of installing these items is not included in the credit calculation. Additionally, a credit is available, including the costs of installation, for certain high-efficiency heating and air-conditioning systems, as well as high-efficiency water heaters and stoves that burn biomass fuel. There is a lifetime limitation of $500, of which only $200 may be used for windows.

Eligibility:

1

Equipment must be installed in an existing home and your principal residence. Rentals or new construction do not qualify.

2

If you claimed $500 or more for enhancements to your home's exterior (e.g. windows, doors, skylights, insulation, roofing) from 2006 to 2014, your HVAC purchase made in 2012-2017 is not eligible.

3

If you claimed $500 or less, you may qualify for a credit, but not receive the full dollar amount specified.