What Tax Rebates for Energy Efficiency are Still Available in 2020?
Jul 30, 2020
Homeowners who make energy-efficient upgrades to their homes in 2020 may be eligible for tax credits or other incentives. These are in place to encourage upgrades to renewable energy by offsetting the cost of the initial setup. Upgrades to solar, geothermal wind, and fuel cell technology all qualify for tax credits.
Here’s a helpful guide on different types of energy tax rebates available for Orlando-area homeowners.
Note: Rinaldi’s does not provide tax, legal, or accounting advice. This material is purely for informational purposes only. It is not intended to provide and should not be relied on for tax advice. Consult your own tax and accounting advisors before submitting any tax forms.
Residential RENEWABLE ENERGY TAX CREDITS
Through 2021, the federal government is offering tax credits for certain renewable energy upgrades. Unlike a deduction that reduces your taxable income, a credit gives you a dollar-for-dollar offset against the taxes you owe. For the 2019 tax year, you can receive a credit for 30% of the equipment cost – including installation.
A solar water heater that generates at least half of the hot water used in your home qualifies for the credit. (It doesn’t apply to solar heaters for hot tubs and pools). Other qualifying equipment includes geothermal heat pumps, small wind turbines, solar panels, and residential fuel cells.
This tax credit can be applied to your primary and secondary residence. Rental properties do not qualify.
This tax credit will expire December 31, 2021, with each consecutive year dropping the percentage of the cost you’ll earn back.
Investment Tax Credit / Federal Solar Tax Credit
ADDITIONAL REBATES AND INCENTIVES
Depending on the specific improvement or equipment you’re planning on investing in, you may also qualify for rebates and incentives like these from area utility companies and reputable HVAC manufacturers.
ORLANDO UTILITIES COMMISSION (OUC)
- Solar PV System Battery – $2,000
- Window Film or Solar Screen – $.55 per square foot
- Heat pump rated 15 SEER (or higher) – up to $1,630
- Natural gas heating system – up to $1,400
- Natural gas water heater – up to $300
Trane currently offers a $150 rebate on select HVAC units.
If you’re considering making upgrades to improve energy efficiency in your Orlando-area home, and you’d like to learn more about available tax savings, rebates and incentives, contact us today at Rinaldi’s Energy Solutions.
What Do I Need to Know About Energy Efficient Tax Rebates Before Tax Season 2019?
Energy tax rebates and credits are confusing to navigate. To avoid problems on your taxes consult with a tax professional before filing.
Can You Claim Energy Efficient Appliances On Your Taxes?
You’ll need to refer to the full details of the Residential Renewable Energy Tax Credit to determine if your appliance qualifies. The main appliances not claimable include refrigerators, ovens, dishwashers, and washer or dryers.
Can You Write Off a New Air Conditioner On Your Taxes?
If your new air conditioner is in your primary residence and rated in the highest tier of efficiency by the Consortium for Energy Efficiency, your unit will more than likely qualify for the Residential Renewable Energy Tax Credit. You do not need to itemize your deductions and can take the standard deduction for your unit.
Remember, the cost of the unit itself isn’t the only thing you can write-off. Expenses related to the air conditioner, such as installation, assembly, and preparation, are all eligible for reimbursement.
What Form Do I Need To File For Energy Rebates For My Income Tax?
To claim the Residential Renewable Energy Tax Credit you will need to file Form 5695. You will then record the final result from Form 5694 on Form 1040.
Ready to Implement Energy Efficiency in Your Home?
When you look at incentives and tax credits related to energy efficiency, there’s an obvious boost to the benefits you’ll experience with upgrades. Not only will your initial costs be cut but you’ll also experience the benefits that follow an energy-efficient upgrade. Contact us to learn how we can help you make your home more energy-efficient.
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