2018 Rebates and Tax Credits Energy-Efficient Homes & Improvements
During the recession earlier this decade, Congress implemented the American Recovery and Reinvestment Act of 2009 (also known as the Stimulus Bill) which was designed to stimulate the economy. Included in the Stimulus Bill was the “Nonbusiness Energy Property Tax Credit, ” which offered federal tax credits for energy-efficient homes to encourage homeowners toward higher energy efficiency and lower power usage.
This bill offered incentives up to $500 for homeowners looking to make their home more energy efficient and was applicable to the replacement of exterior doors and windows, insulation, heat pumps, furnaces, central air conditioners, and water heaters. This act ultimately concluded in December 2016 and was not renewed.
Your 2018 energy efficient home improvements tax incentive and credit options
In 2018, your options for getting tax credits are much more limited, as the Stimulus Bill is no longer active. Today, the only federal tax credits that remain in effect are for renewable energy but not energy efficiency. Renewable energy includes solar energy systems, such as solar water heaters and solar panels. These federal tax credits remain in effect through December 2021.
So, what if you are in the market for a high efficiency, Energy Star furnace but are also interested in seeing what credits/discounts are available to you? While the federal level incentives are limited, most states (as well as the public utility companies that service their residents) have their own program aimed at offsetting costs associated with making a home more energy efficient.
No state-level tax credit/rebate is the same as it will vary state-to-state regarding the amount of the credit, what systems apply, and the duration of the credit. Click here to see what state-specific energy incentives are available. Remember, if you don’t see anything applicable to your home, also contact your electric/gas company as they likely have their own programs.
For example, Consumers Energy (a public utility that provides natural gas and electricity to 6.6 million of Michigan’s 10 million residents) offers rebates for many different HVAC upgrades that improve your home’s energy efficiency with the biggest rebate being $1,500 for a natural gas boiler with a 95% AFUE rating or higher.
Do your research first before you get started on your energy-efficient home improvements
Additionally, before you get all excited about the potential of saving money AND increasing your energy efficiency, make sure to read all the fine print before starting the project. Some states may require that you apply for the credit before starting the project.
If you’re interested in seeing how you can make your HVAC system more energy efficient, saving you money, connect with service.com today to get a free quote from one of our qualified pros!