What is the Residential Energy Credit?

Residential Energy Credit

The Residential Energy Credit is a recent 2016 tax law change provides a nonrefundable tax credit to improve the energy efficiency of existing homes. The law provides a limited 30 percent credit of the cost for purchasing qualified energy efficiency improvements. To qualify, a component must meet or exceed the criteria established by the 2000 International Energy Conservation Code (including supplements) and must be installed in the taxpayer’s main home in the United States.

Qualifying Energy-Efficient Products:
  • Exterior skylights, windows, doors
  • Heating and air conditioning
  • Insulation
  • Solar Water heaters
  • Geothermal heat pumps
  • Small wind turbines
  • Biomass Stoves
  • Roofs
  • Installation costs
  • Solar electric equipment
Qualified Electric Plug-In Vehicles:

The low-speed vehicle must have at least four wheels, draw propulsion, use a rechargeable traction battery with at least four-kilowatt hours of capacity.  You can get credited 10 percent of the cost of the vehicle for a maximum credit of $2,500.

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