Breakdown of Residential Energy Efficient Improvement Tax Credits

Monday, February 4, 2013 @ 06:02 AM
posted by Admin

In our last post, we wrote about the extensions of Federal tax credits for residential energy users. The extensions –which will last until at least the end of 2013—are great news for households that plan on investing in energy efficient appliances and improvements as well as 2-, 3-, and 4-wheeled plug-in electric vehicles.

Individuals can receive energy credits for the amount equal to the sum of (1) 10% of the amount paid for energy efficient improvements during the year and (2) the full amount spent on residential energy property during the year. The lifetime limitation is $500 over the combined credits for energy efficient improvements.

Qualifying energy improvements include the following, and each must meet the minimum efficiency requirements set by the IRS Tax Code Section 25C Tax Credit.

Energy efficient

  • Air Conditioners – $300 (maximum tax credit)
  • Heat Pumps – $300
  • Furnaces – $150
  • Boilers – $150
  • Water Heaters – $300
  • Advanced Circulating Fan – $50
  • Insulation Materials or Systems – $500
  • Windows/Doors/Skylights – $200

Federal tax credits for plug-in electric vehicles have also been extended through 2013 and now include motorcycles (though not golf carts as in 2012). The total amount of the credit that can be applied for a plug-in electric vehicle is capped at $7,500. More information about the tax credit for electric vehicles can be found here on IRS’s website.

Are you producing your own electricity from renewable sources? Learn more about qualifying energy systems under the renewable electricity tax credit.



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