RESIDENTIAL ENERGY EFFICIENCY TAX CREDIT - This credit applies to energy efficiency improvements in the building envelope of existing homes and for the purchase of high-efficiency heating, cooling and water-heating equipment. Efficiency improvements or equipment must serve a dwelling in the United States that is owned and used by the taxpayer as a primary residence. The maximum tax credit for all improvements made in 2011, 2012, 2013 and 2014 is $500.*
*On December 19, 2014, President Obama signed the Tax Increase Prevention Act of 2014 into law. Under this new legislation, a number of Federal tax credits were retroactively restored through the end of the 2014 tax year. These various tax credits had previously expired on December 31, 2013, but are now reinstated through December 31, 2014. This law includes the Federal Tax Credits under Code Section 25C that apply to the purchase and installation of residential energy saving systems in 2014.
The terms of this residential energy savings credit are exactly the same as the program that expired in 2013, but are now valid until December 31, 2014. This program provides tax credits of 30% of the total cost of the purchase and installation for high efficiency heating and cooling systems used in a homeowner’s primary residence. The total tax credit available is capped at $500 per homeowner for any and all energy savings credits.
We will keep this page updated as more information becomes available.