Making energy efficient upgrades to your home is a great way to save on energy costs, and could now be less expensive. With the passing of the Bipartisan Budget Act of 2018 (BBA), residential energy tax credits that were set to expire have been reinstated through 2021. To claim these credits, a taxpayer must have made energy saving improvements to their home in the United States.
Types of Qualifying Residential Energy Property
Individuals who meet the qualifications may be able to take a credit of 30% of their costs of qualifying residential energy property. Below we discuss each type of qualifying property.
Qualified Solar Electric Property
Property that uses solar energy to generate electricity for use in your home.
Qualified Solar Water Heating Property
Property that heats water for use in your home, if at least half of the energy used by the solar water heating property is derived from the sun. To qualify, the property must be certified by the nonprofit Solar Rating Certification Corporation or a comparable entity endorsed by the government of the state in which the property is installed.
Qualified Small Wind Energy Property
Property that uses a wind turbine to generate electricity for use in connection with your home.
Qualified Geothermal Heat Pump Property
Any equipment that uses the ground or ground water as a thermal energy source to heat your home or as a thermal energy sink to cool your home. To qualify, the property must meet the requirements of the Energy Star program that are in effect at the time of purchase.
Qualified Fuel Cell Property
An integrated system comprised of a fuel cell stack assembly and associated balance of plant components that converts a fuel into electricity using electrochemical means.
If you think you may qualify or would like to find out how to qualify for these residential energy credits, please contact an Anders advisor.All Insights