Going green could yield some tax credits
Homeowners can save money on their taxes and help the environment by making some changes around the house that might even make them eligibale for tax credits.
Individuals who purchase qualifying energy-efficient Energy Star appliances or renewable energy systems for their homes may be eligible for a federal tax credit.
Households are eligible for 30 percent (up to a total of a $1,500) of the purchase price back via a credit on many items. These tax credits are non-refundable, so a person cannot get more back in tax credits than he or she pays on federal income tax.
Here are items that are eligible to provide a tax credit:
• Biomass stoves used to burn biomass, such as crops, trees and wood wastes. The stove must provide a thermal efficiency rating of at least 75 percent.
• New furnaces, air source heat pumps, central AC units, water heaters (non-solar), and main air circulating fans.
• Bulk insulating products, including batts, rolls and blow-ins. Air sealing products that come with a Manufacturers Certification Statement may also qualify.
• Roofing materials that reflect sunlight to reduce heat gain.
• Energy efficient windows, doors and skylights.
These materials must be used at a primary residence. Rentals and new construction do not qualify.
Tax credits for residential wind turbines, geothermal heat pumps and solar energy systems run until Dec. 31, 2016, offering 30 percent back with no limit.
Homeowners looking to make environmentally friendly renovations can visit www.energystar. gov to learn more about tax credit requirements.