With the rising concern for the environment and its future. Both Federal and State governments are giving incentives to businesses, homeowners, and other institutions to go green. There are thousands of incentives out there. But unfortunately, only so many people are aware of these amazing benefits. Among these benefits are tax credits, tax breaks, subsidies, and more! Business and even individuals should take advantage of these benefits, save money and possibly gain a competitive step over their competitors. Here in this article, I will detail several tax credits and other incentives, and how to obtain them.
FINDING WHAT WORKS FOR YOU
Choosing the right or correct incentive can be a daunting task, especially the amount research needed to do first before you find the right one that fits best your situation. Firstly, take note of the industry, county, state, or even purpose of going green. “One green federal tax incentive that will be around for a while is the tax credit for renewable home energy systems.
The credit — which will remain intact through Dec. 31, 2019, covers 30 percent of the cost of a solar electric and solar water heating systems, with no upper limit. Unlike some tax incentives, it applies to any owned home – not just a primary residence. After 2019, the credit is reduced each year until it expires at the end of 2021.
A tax credit for 30 percent of the cost of a residential fuel cell and microturbine system — up to $500 per 0.5 kilowatts of power capacity — is also available through Dec. 31, 2016. New construction and existing homes qualify for the credit, but the home must be your primary residence.
Energy systems for rental homes are excluded from both credits.
The process is quite simple, “most of these green energy and home efficiency tax credits are valid through the end of 2016, apart from the solar energy generation credit (available through 2021) and the EEM program (available indefinitely). They are offered by the Federal Government and are available to any U.S. homeowner who files a federal tax return. Unless otherwise noted, you can apply for each credit by filing IRS Form 5695 with your federal tax return.”
Your options for credits are not limited to what is shown here, but here are some examples of what to expect:
- Solar water heaters and photovoltaic solar electricity generation systems (solar panels) use the carbon-free power of the sun to heat water or generate electricity. They both qualify for a tax credit equal to 30% of the equipment and installation costs through 2019, with no cap on credit size. In 2020, the credit decreases to 26% of the total equipment and installation costs. In 2021, the credit further decreases to 22% and expires completely on December 31st of that year. The credit can be claimed on existing and new construction homes (including second homes), but not on rental properties.
- Residential small wind turbines use the power of the wind to generate carbon-free electricity. Though they’re compact compared to utility-scale turbines, which soar hundreds of feet into the air and sweep an area of an acre or more, they do require ample space, so they’re not ideal in densely populated urban areas.
- Air source heat pumps efficiently distribute heat throughout the home, providing warm and cool air (in a single system) at anywhere from one-and-a-half to three times the efficiency of conventional heating and cooling systems. In mild climates, heat pumps can entirely replace traditional furnaces and air conditioners. In cold climates, heat pumps are typically paired with oil or gas furnaces to provide adequate heat during the cold season, though newer models are capable of operating through extended sub-freezing periods. According to the Northeast Energy Efficiency Partnerships, heat pumps save an average of $459 per year when replacing electric resistance heaters and $948 per year when replacing oil-fired systems.
It is quite simple;
Save money and live a better and healthier life. Care for the environment starts in your own personal life, be an example.