The federal tax incentives for energy efficiency expired on December 31, 2013. The extension of energy efficiency incentives is currently being debated in Congress and it remains unclear whether federal incentives will be extended into 2014 or beyond. We will post updates on our website when the status changes.
Five tax credit incentives remain in place and unchanged from the prior law:
- New and retrofitted commercial buildings that use half the energy of a building built to model codes, scheduled to extend until 12/31/13.
- Plug-in electric drive vehicles scheduled to extend until 12/31/16.
- Combined heat and power systems scheduled to extend until 12/31/16.
- On-site renewable energy systems including ground-source heat pumps, scheduled to extend until 12/31/16.
- Fuel cells and microturbines scheduled to extend until 12/31/16.
According to EnergyStar.gov, a tax credit can be claimed for 30% of the cost of installing a geothermal heat pump, small wind turbine or solar energy system in your home. The credit has no upper limit and applies to both existing homes and new construction, but not to rental properties. This credit is good until Dec. 31, 2016. You can also get a credit of up to 30 percent of the cost of residential fuel cells, up to $500 per .5kW of power capacity. This credit is also available until Dec. 31, 2016.