What better way to celebrate Fall than by saving some money? With the temperature beginning to drop, it’s time to start looking around the house for ways to save on energy costs. Take advantage of some great tax credits and deductions for energy-efficient purchases.
The Residential Energy Efficient Property Tax Credit offers you some major tax breaks when it comes to purchasing qualifying energy-efficient appliances. The IRS is offering a credit on your tax return for 30% of the cost of alternative energy purchases – Wind Energy from Wind Turbines, Solar Energy from Solar Panel Systems, and Solar Hot Water Heaters.
Not only will these alternative resources save you money each month, but they’ll reduce the amount of taxes you owe, helping to turn your tax bill into a tax refund. What makes this credit even better is that there is no limit on the amount of available credit. Your credit is 30% of your qualified purchase for the following:
- qualified solar electric systems;
- qualified solar water heaters;
- qualified fuel cell property;
- qualified small wind energy property; and
- qualified geothermal heat pumps.
The credit for expenditures made for qualified fuel cell property is limited to $500 for each one-half kilowatt of capacity of the property; the amounts of the other qualified expenditures eligible for the credit are not limited. In addition, this credit may be carried over if it exceeds the limitation imposed by section 26(a). The credit is available for property placed in service through Dec. 31, 2016.
The credit for solar electric property and solar water heating property is extended for property placed in service through December 31, 2021, at applicable percentages as described in the statute.
Don’t worry about memorizing the tax laws, your local Dallas CPA Firm can answer all your questions and tell you the tax deductions and credits you are eligible for. So call today!
