Tax Credits for Becoming Energy Efficient

Making your home or business more energy efficient will save you on your taxes this year. You can receive a tax credit for installing various energy efficient home improvements. The “Emergency Economic Stabilization Act of 2008″ gives tax credits for installing energy efficient windows, storm doors, insulation, and high efficieny heating and cooling equipment. You can claim about 10% of the cost of the  improvements — up to $500 for your energy efficient home improvements.

Additionally, installing solar panels, a wind turbine, or qualified fuels cells on your property will give you an even bigger tax break — up to 30% of the cost of the equipment.

Equipment and supplies for your home improvement must be labeled with the “Energy Star” logo to qualify for these tax breaks.

Home builders and commerical builings can qualify for energy efficieny tax breaks as well. Note that not all Energy Star appliances and equipment will qualify you for a tax break.  You can find additional information on Energy Star, qualifying appliances and equipment, and information on these federal tax breaks from the Energy Star website.