Budgets and Money

Take Advantage of Energy Tax Credits

Taking the initiative to "go green" may be worth your while. As a homeowner you could earn tax credits that will enhance your household budget, just for trying to reduce your carbon footprint.

Energy Efficient Tax Credits to Improve Your Household Budget

Most Americans take the term “going green” very serious these days. We're all recycling more, buying energy efficient vehicles, and trying to reduce our carbon footprint as much as possible. Today, the federal government is rewarding homeowners who are striving towards sustainability with two energy efficient tax credits that can help boost your household budget.

The Energy Property Credit

By simply making some energy efficient home improvements, you may be eligible to receive up to $500 under the Energy Property Credit. Some examples include:

  • Installing energy efficient windows and doors

  • Adding energy efficient insulation

  • A new roof, furnace, or air conditioning

  • …and more

This credit has a lifetime limit of $500, and there are specific dollar limits on some improvements. 

The Energy Efficient Property Credit

If you're looking at making more substantial home improvements towards sustainability, the Energy Efficient Property Credit can help offset some of the cost of your investment. By installing alternative energy equipment, this credit allows homeowners to write off up to 30 percent of qualifying improvements that includes:

  • Solar panels

  • Geothermal heat pumps

  • Wind turbines

  • Fuel cell property

  • …and more

With the exception of fuel cell property, there are no maximum credit limits for qualifying improvements. This credit is in effect until the year 2016 with the possibility of extending into 2017.

For more information on how you might qualify for these energy efficient tax credits, consult with a qualified tax professional.

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All Learning Center articles are general summaries that can be used when considering your financial future at various life stages. The information presented is for educational purposes and is meant to supplement other information specific to your situation. It is not intended as investment advice and does not necessarily represent the opinion of Protective Life or its subsidiaries.

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Homeowner Budget

If you're a homeowner who is looking to go a bit greener with your home improvement projects, while at the same time, give your household budget a boost, you're in luck. By taking advantage of some new and extended tax credits for homeowners, you can help save the planet as well as money. For more information, visit the Protective learning center.