Tax Credits for Energy Efficient Home Improvements

The increasing energy prices and the growing concern about the effects of climate change are factors why home owners are opting for a well designed, energy efficient home.  An energy efficient home reduces energy bills and helps clean the environment. Additional plus side of having an energy efficient home is the tax credits applied on energy efficient home improvements.  The tax credits are deducted from your tax bill and if your credit is larger than your tax due, you can get a refund. On the other hand, deductions are deducted from your income, so there's less income to tax.

Renewable energy source tax credits for wind, solar and geothermal improvements are available through 2016.

Replacing windows, doors and skylights will give you a 10% credit up to $200 on windows and $500 for doors and skylights on the cost of materials only. Installation excluded.  

Insulation will give you 10% credit up to $500 on the cost of the materials only. Installation excluded. 

Tax credit for non-solar water heaters is a $300. Qualifying waters can include gas, oil, propane and electric heat pumps.  Using normal water heaters can add up to 25% of the energy used in your home.

Solar energy systems, small wind turbines and geothermal heat pumps get you a tax credit of 30 percent off the cost of the system, including installation, with no ceiling on the amount of the tax credit. (Source: www.realtytimes.com)

It's not difficult to cut on energy costs in your home. By making minor changes in your home, you can make significant savings.  Over time, those savings will add up while being environment friendly.  Not to mention, the government rewards on the energy 

efficent improvements done to your home.

For more information on how to make your home more energy efficient

http://www.akenergyefficiency.org/energy_assessment.

If you want to know more about rebates and tax credits you can benefit from, you can visit http://www.energysavvy.com/rebates/ and http://energy.gov/savings?rebate_eligibility=0&rebate_savings_for=0&rebate_provider=0&rebate_state=7879