Residential Energy Efficiency Property Credit

As of the 2015 tax year, the federal government extended the Residential Energy Efficiency Property Credit through 2016. This tax credit is 30 percent of the cost of alternative energy equipment installed on or in your home. The Residential Energy Efficiency Property Credit includes qualified equipment for solar, wind, geothermal and fuel-cell technology. Both existing homes and new construction qualify. Rentals do not qualify.

Qualified Equipment includes:

• Solar Energy Systems – Solar water heaters and solar panels are eligible for tax credits. Both the solar water heaters and solar panels must generate at least half of the energy from the sun. The system must be certified by the Solar Rating and Certification Corporation or a comparable entity endorsed by the government. Qualifying photovoltaic systems must provide electricity for the residence and meet applicable fire and electrical code requirements. The credit is not available for expenses for swimming pools or hot tubs. The water must be used in the dwelling.
• Small Wind Turbines – A wind turbine converts energy from the wind into electricity that’s compatible with your home’s electrical system. The turbine must have a capacity of no more than 100 kilowatts.
• Geothermal Heat Pumps – Geothermal heat pumps use the ground instead of outside air to provide heating, air conditioning and, in many cases, hot water.  They are among the most efficient heating and cooling technologies available because they use the earth’s natural heat.
• Fuel Cell Technology – Fuel cells are important enabling technology for the hydrogen economy and have the potential to offer cleaner, more efficient alternatives to the combustion of gasoline and other fossil fuels. They must have an efficiency rate of at least 30% and have the capacity of at least 0.5 kW.

You can also claim the Residential Energy Efficiency Property Credit for 10% of the cost of qualified energy efficiency improvements up to $500 or a specific amount from $50 – $300. The improvements must be for an existing home and be your primary residence. New construction and rentals do not apply.

Qualified Equipment Includes:

• Biomass Stoves
• Air Source Heat Pumps
• Central Air Conditioning
• Gas, Propane, or Oil Hot Water Boiler
• Gas, Propane or Oil Furnaces and Fans
• Insulation
• Roofs
• Water Heaters (non-solar)
• Windows, Doors & Skylights

Check the Energy Star website for more details.

For ENERGY STAR appliances purchased 06/01/2015 – 05/31/2016 ComEd is offering additional rebates to their customers. To find product rebates and other special offers visit the rebate finder.