Typically during the hot months of summer or during the cold months of winter energy prices tend to soar. Nothing is more upsetting than receiving an electric bill that looks more like a brand new car payment! Rather than just paying the bill, many people are considering alternative sources of energy. The best part about it is that there is a tax credit available to help you save money on your tax return.
The residential energy efficient property credit is still available to help pay for qualified residential alternative energy equipment. The equipment includes solar hot water heaters, solar electricity equipment and wind turbines. The credit runs through 2016 and is 30 percent of the cost of qualified property. There is not a cap on the amount of credit available, except for fuel cell property. Generally, you can include the cost of labor and the best thing is you can carry forward any unused credit amounts to future years. Qualified equipment must be installed on your home located in the United States. Before you buy, make sure you have the manufacturer’s tax certification statement.
Energy bill fluctuations can be a pain but the residential energy efficient property credit could save you money down the road.
For more information on this tax credit, visit our Knowledgebase here.