- Category:
Home Energy Savings - Published:
February 24, 2015 - Updated:
July 6, 2021
Find out if Uncle Sam owes you energy tax credits
Tax season is here! Now is the time to figure out if your energy efficiency improvements in 2014 could qualify for tax credits in 2015.
How much is the Tax Credit?
Each of the equipment listed below qualifies for a tax credit of 30% of the cost (including installation/labor costs with no upper limit). Fuel cells qualify for the 30% credit, up to $500 per 0.5 kW of power capacity.
What qualifies for the Tax Credit?
Did you install any of the following qualified equipment in or on your principal residence in 2014? Click the equipment you installed to see more details about the credits awarded.
- Solar Electricity equipment
- Solar water heating equipment
- Small wind energy equipment
- Geothermal heat pump equipment
- Fuel cell and microturbine equipment
If you answered yes, you are probably wondering how you can collect the tax credit? First, you’ll need to see if you have any tax liability. Click here to check out the IRS’s explanation on tax liability, and be sure to consult an accounting professional if you need further assistance.
Energy Products Excluded from the Credit
The extension of the tax credits to 2016 limited the number of products that now qualify for a tax credit. Click here to see what products are NOT covered by the tax credits.
What’s next? Submit a Form 5695 by April 15.
If you meet the qualifications for the tax credits, it’s time to break out the calculator and fill in your tax forms. You will need to submit the 2014 version of IRS Form 5695 with your 2014 taxes. Be sure to save your receipts and the manufacturer’s certification statement for your records!
Bonus! Certain tax credits can be carried over to future years.
Geothermal heat pumps, solar panels, solar water heaters, small wind energy systems and fuel cells are the only products that qualify for carry-over by the IRS. The current tax credits are in effect through 2016. Learn more here.
Some states offer incentives for buying an ENERGYSTAR certified home
Use these two tools to see if there are incentives available in your state. Some states also show city-level incentives.
The ENERGYSTAR Partner Locator Tool shows incentives available for new homes that are ENERGYSTAR certified.
The Database of State Incentives for Renewables and Efficiency provides a map tool that links to state and city-level incentives or rebates offered for residential energy efficiency improvements. There’s even a link to federal incentives.
Sources: energystar.gov, energystar.supportportal.com and dsireusa.org
