Tax Credits Available for Energy Efficiency Improvements in 2013

In response to the fiscal cliff, Congress renewed three tax credit programs for energy efficiency including the Residential program for homeowners. The American Taxpayer Relief Act of 2012 renewed the Residential Energy Efficiency Tax Credit for improvements completed in 2012 and 2013 for up to a $500 credit. The tax credit covers eligible efficiency technologies such as building insulation, water heaters, boilers, furnaces, and more.  If a taxpayer claimed $500 or more of this credit in previous years they may not claim any additional credit.

Insulation materials and systems designed to reduce a home's heat loss or gain are eligible, such as the air sealing and insulation work completed on your home under building envelope improvements. Owners of existing homes may receive a tax credit worth 10% of the cost of upgrading the efficiency of the building's envelope. Both insulation and air sealing can produce considerable savings for a home by reducing the escape of heat in the winter and cold air in the summer.

The tax credit covers a variety of boilers, furnaces, hot water heaters and air conditioners. In recent years the average efficiency of HVAC equipment have increased considerably. By replacing your current heating and cooling systems, your home won’t have to work as hard to maintain a comfortable temperature. For a complete list of qualifications for these items please visit energystar.gov/taxcredits.
In New Jersey, homeowners can receive up to a $5,000 rebate and $10,000 of zero interest financing through the Home Performance with EnergyStar program (HPwES) for energy efficiency improvements. The HPwES program allows more homeowners to make energy efficiency improvements that will help reduce utility bills and increase the comfort of their home.

With the extension of the Residential Energy Efficiency tax credit program, upgrading a home to become more energy efficient not only has immediate benefits of a more comfortable home, lower utility bills, and a potential rebate, but the added bonus of a tax credit.

With energy cost rising and household budgets tightening it isn’t it time to start on your path to an energy efficient home that saves money and receives a tax credit for work done?

This makes now the perfect time to schedule an energy audit and start on your path to a more comfortable and energy efficient home!

By Alexis Lawler
Ciel Power LLC