Tax day is Monday! In its honor, we want to share with you some tax incentives when you upgrade your home and go “green”. Prime Five Homes’ remodeling projects can transform your home into an eco-friendly, efficient, and modern space that can save homeowners thousands on their utility bills each year. For today’s Prime5Fridays edition, we’ve compiled a list of rebates and tax breaks below that can increase your tax refund for 2016! Remember, over the life span of your home, these features will save you significantly more money than the original out-of-pocket expenses. They will also increase the value of your home exponentially, and reduce your home’s environmental impact! If you decide to install any of these features yourself, just ensure that the systems meet the ENERGY STAR program requirements at the time of their purchase, in order to get your tax credits!
- Solar Energy Systems
In sunny California, an extremely effective way to lower energy costs is by installing solar panels. Not only will it save you money down the road, but you’ll receive a tax credit on 30% of the cost of the purchase, as well as installation. A great incentive for homeowners to jump on this green home improvement feature this year.
- Residential Wind Turbines
If you live in a windy area, a small wind turbine is another way to generate electricity for your home. Although it may seem like an ancient method, you can receive a tax credit for a turbine installed at your primary or secondary home worth 30% of the cost of parts, labor, and installation.
(Photo by TechnoSpin via Flickr Creative Commons)
- Geothermal Heat Pumps
A geothermal heat pump utilizes the natural heat emitted by the earth’s core and converts it to energy that can be used to run your home. The pump and installation can cost around $30,000, but a tax credit for up to 30% of the cost of parts, labor, and installation is a pretty sweet deal.
(Image courtesy of MacDonald Heating and Cooling. www.macdonaldheating.com)
- Windows, Doors & Skylights
Replacing doors, windows, and/or skylights with energy-efficient variations may result in your eligibility for a tax credit of 10% on their retail price.
- Non-Solar Water Heaters
If you need a new water heater and don’t want to convert to solar, opt for another energy-efficient model such as one that uses natural gas, propane, or oil. The tax credit is worth up to $300.
Prime Five Homes cannot be held accountable for changes in tax incentive programs or any of the information contained in this post.