Take advantage of federal tax incentives when you make energy efficient upgrades in 2013.
Tax Credits for Specific Improvements
The following tax credit information is provided by the Tax Incentives Assistance Project (TIAP). Please consult a tax professional for further information.
Several tax incentives were extended and changed through the American Taxpayer Relief Act of 2012, also known as the “fiscal cliff bill,” which passed Tuesday, Jan. 1, 2013. Residential tax incentives for existing homes, including purchases made in 2012, were extended through 2013. These incentives include the following measures. Click on each measure for more information.
The new homes credit was extended and changed. It provides an incentive to builders for new homes that reduce energy use at least 50% relative to the IECC-2006 building code. This is a change from prior law that used the IECC-2003 as a base.
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 percent 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.