Tax credits from Energy Star are here … and able to save you $500 or more! Learn more:
Incentives for energy efficiency
Did you know that there’s a program through the federal government and Energy Star, meant to reward you for environmentally friendly home purchases? From heating and cooling systems, to insulation and roofing, to solar power, there are all kinds of rewards you could get, in the form of tax credits!
More about the program
Of course, the tax credits don’t just apply for any old heating and cooling system purchased at any time. Instead, the credits only apply to Energy-Star-certified equipment, purchased between December 31st, 2017, and December 31st, 2021. That’s why we’re letting you know early … even though you won’t file your 2021 taxes until next year, if you want the tax credits, you’ll need to have new qualifying equipment installed by the end of 2021!
So, what exactly is this equipment?
To start with, equipment qualifying for tax credits can include furnaces, air conditioners, heat pumps, water heaters, and boilers. But it could also include other types of things! Those would include insulation, roofing, doors/windows, or even solar power, which we’ll cover later.
- A qualifying gas furnace must be 95 AFUE or higher, and will get you a $150 tax credit.
- A qualifying air conditioner must have a SEER rating of 14 or higher (if packaged and not a split system), and will get you a $150 tax credit.
Purchases that are eligible for a tax credit of 10% of the cost, up to $500, include:
- Home insulation
- Metal/asphalt roofing
- Energy-Star-approved doors and windows
Again, keep in mind that the purchases only qualify if made from December 31st, 2017, to December 31st, 2021. (If you purchased these products before 2021, you can’t make the claim on your 2021 tax return, but you can consult a CPA about filing an amended tax return.)
One last thing to note that probably won’t apply to most consumers, but is very interesting nonetheless, is the potential to make even more money from renewable energy tax credits! These credits apply if you’ve made significant home renovations that qualify as renewable energy, such as geothermal heat pumps and solar energy. In fact, you can actually get up to 30% of the original cost back, through these tax credits!
If we’ve piqued your interest here with these significant savings, visit the Energy Star website to learn more. And if you have any questions about high-efficiency heating and cooling equipment before you install it in your Inland Empire home, ask the experts at Ballard! Contact us online or call now: 909-297-1914