Home Energy Tax Credits Saved by the Fiscal Cliff

May, 29 2013 02:05

Home Energy Tax Credits Saved by the Fiscal Cliff

For several years, the United States offered energy-efficiency tax credits for homeowners and a tax credit for builders of new energy-efficient homes.  These tax credits both expired at the end of 2011, but lobbyists continued to fight for them, and as the fiscal cliff loomed at the end of 2012, the lobbyists saw an opportunity and grabbed it.

For Homeowners

As part of the deal to prevent the country from falling over the fiscal cliff, Congress extended the calendar for the energy-efficiency tax credit to the end of 2013.  This is good news for homeowners, who now have access to a $500 tax credit that can be applied to the following eligible equipment:

Another available tax credit is worth 10% of the cost of upgrading a building’s outer shell, or “envelope.”  This $500 tax credit is available for the following improvements:

Further, homeowners also have access to a tax credit of 30% of the cost of residential wind turbines, photovoltaic (PV) systems, solar water heat systems, and ground-source heat pumps.  This tax credit won’t expire until 2016.

 

For Home Builders

Like the tax credit for homeowners, the tax credit for builders of new energy-efficient homes was put back on the table at the end of 2012, and won’t expire until the end of 2013. 

From the Database of State Incentives for Renewables & Efficiency:

Given President Obama’s commitment to green energy and energy efficiency, it is likely that he will push to have these tax credits extended beyond 2013.  But they’re here right now, for homeowners and builders to take advantage of.  The benefits of having a more energy-efficient home and the opportunity for a substantial tax credit make the improvements a win-win.

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