You can lower your taxes by installing a surprising number of improvements to your house, from more insulation to a complete solar energy system. There are lots of rules to examine – and here we take a look at just a few. Fortunately, we can help lead you to these tax savings based on your specific situation.

Rewarding You for Energy Efficiency

The tax benefits are managed by ENERGY STAR, which is a US Environmental Protection Agency program that  helps people “save money and protect our climate through superior energy efficiency.” You can see the label when you’re at the office or when you’re at home: that’s because for 20 years, the ENERGY STAR label has been found throughout our homes, as well as seen on our appliances and on our lighting.

“Through its partnerships with 18,000 private and public sector organizations, according to its site, ENERGY STAR has been a driving force behind the more widespread use of such technological innovations as efficient fluorescent lighting, power management systems for office equipment, and low standby energy use,” as written on the ENERGY STAR’s site.

Many tax incentives are only in effect for the current year, and could be gone next year, so be sure that your project is completed in 2016.

Also of note: most of the tax credits only apply to your principal residence, not a house you rent out, and only to existing houses, not a new one being built now, according to the ENERGY STAR website. Again, be sure to ask us to help determine if you are eligible.

Here are just a few of the credits you may be eligible for – all from the ENERGY STAR website.

1. Central Air Conditioning.

First and foremost, let’s start with the AC! You can get a $300 tax credit for an air conditioner if it is recognized as ENERGY STAR Most Efficient 2016.

2. Gas, Propane or Oil Furnaces and Fans.

Gas furnaces that are ENERGY STAR certified (no surprise there!) meet the requirements for the furnace tax credit. Gas and oil furnaces that have earned the ENERGY STAR include fans that meet the requirements of the fan tax credit. The tax credit is $150 for the furnace, and $50 for an advanced main air circulating fan, according to the ENERGY STAR website, where you can find more details.

3. Air Source Heat Pumps.

Heat pumps that are ENERGY STAR certified qualify for a tax credit of $300.  Air source heat pumps are the most common type of heat pumps, so this can benefit many people.

4. Insulation.

We’ve talked about before how insulation is one of the most cost-effective home improvements you can implement, although sometimes it is overlooked by homeowners. The tax credit is 10% of the cost of the products (not including installation costs), up to $500, according to the ENERGY STAR site.

5. Gas, Propane, or Oil Hot Water Boiler.

Gas powered boilers that are recognized as ENERGY STAR Most Efficient 2016 bring a tax credit of $150. And this tax credit includes installation costs.

6. Roofs.

This tax credit is for ENERGY STAR certified metal and asphalt roofs with pigmented coatings or cooling granules designed to reduce heat gain.

“The amount of the tax credit is 10% of cost, not including labor costs. Also, there is a there is a total combined credit limit of $500 for all purchases/improvements for all years since 2005,” reads the site.  So, that means you will want to check your past tax returns before you claim this credit!

7. Water Heaters.

Every electric water heater that is ENERGY STAR certified electric water meets the requirements for this $300 tax credit, as do certain ENERGY STAR certified gas water heaters.

8. Windows, Doors & Skylights.

Windows, doors and skylights are just a few more ways you can change how your home is impacting the environment.  And there is a tax credit of 10% of cost, says the ENERGY STAR site.

9. Major Energy-Saving Projects.

The government provides larger tax credits for a group of improvements that bring Big energy savings, and that cost a lot, as explained on the ENERGY STAR website. The tax credit for these is 30% of cost, with no upper limit. The credit includes installation costs, and applies to new construction as well as existing homes. But note that it only applies to your primary residence, not rental properties.

These credits are for the following:

• Geothermal heat pumps.
• Small wind turbines.
• Solar energy systems.

Even more savings that you should be aware of: state and local governments provide even more incentives for greater efficiency – all of which can really add up to greater savings for you and your family, and some of it, you may already be planning! The experts at GC Home Services can help you discover these.

Call the Experts at GC Home Services to Learn More Today

If you want to know about the steps you can take related to heating and cooling to save money, give us a call today. If you’re exploring the idea of an HVAC installation knowing your system will need an upgrade or replacement, or if you need a new unit immediately, we have you covered. We’ve installed, maintained and repaired more than 25,000 HVAC systems in our 28-year history. Give the experts at GC Home Services a call today at 859-491-4915.

Note: Information from this post was taken directly from this website: https://www.energystar.gov/about/federal_tax_credits