If you made energy efficient improvements to your home in 2015 you may be eligible for significant tax credits on your income tax return. To qualify for the credit the energy improvements must be to your home which must be located in the United States. The credit is equal to 30% of the cost of qualified improvements.
The 30% residential energy efficient property credit pertains to five (5) types of qualified improvements which consist of:
- Qualified solar electric property that uses solar energy to generate electricity for use in your home.
- Qualified solar water heating property
- Qualified small wind turbines, up to $4,000 cost , used to generate electricity for use in your home
- Qualified geothermal heat pumps which use ground water as a thermal energy source to heat or cool your home
- Qualified fuel cell property that converts a fuel, like natural gas, into electricity using an electrochemical process (There are limitations based on kilowatt power capacity}
The credit is used to offset your regular income tax liability and any excess credit can be carried over to tax year 2016.