Energy Tax Credit

Energy tax credits are refunds and rebates offered to homeowners who have made commitments to energy efficiency. Conditions apply.

What is an energy tax credit?

An energy tax credit is a refund or rebate offered to homeowners who make commitments to energy efficiency. It allows individuals, businesses, and organizations to save money on their taxes when they invest in renewable energy technologies such as solar panels, wind turbines, geothermal systems, and more. The amount of the credits varies depending upon current legislation and whether the credits are federal or at the state level.

How can I receive an energy tax credit?

In order to qualify for an energy tax credit, you must meet certain criteria depending on your location. Generally speaking, you must purchase and install qualifying equipment (such as solar panels or an energy efficient HVAC system) as well as demonstrate proof of improvement efficiency before any credits are granted. Additionally, many states require that the equipment be certified and approved by local governments before it qualifies for a credit. It is important to check with your state’s energy office or department to determine what qualifications are required in order to receive an energy tax credit. 

What kind of savings can I expect?

The amount of savings associated with an energy tax credit will vary depending on the type and value of the improvements made and the current legislation. Generally speaking, these credits may range anywhere from 10% up to 30% of the cost incurred when purchasing and installing qualifying renewable energy technologies, though there may be caps on the total credit amount. Additionally, certain states may also offer additional incentives such as performance-based rebates that allow homeowners to save even more money on their taxes by investing in energy efficient improvements. 

Are there any other benefits associated with an energy tax credit?

In addition to the direct savings offered by energy tax credits, many states offer additional incentives for making investments in renewable energy technologies such as tax deductions and exemptions from certain fees. Additionally, homeowners who make investments in renewable energy systems may also be eligible for other forms of government assistance such as low-interest loans or grants that can further reduce their overall cost of ownership over time. 

By understanding the benefits of energy tax credits, you can make a more informed decision about your home’s efficiency needs and take advantage of any available savings opportunities. With the right combination of renewable energy investments and incentives, improving your home’s efficiency doesn’t have to be costly—it could actually end up saving you money in the long run! 

Learn more about currently available offers, rebates, and tax credits