Are you thinking about or have already purchased an energy efficient or renewable energy system, such as wind or solar, for your home? Energy rebates are the perfect way to get payed for going green, keeping your wallet full and lowering your energy dependence on the vulnerable power grid.
In 2020, homeowners building geothermal heat pump, small wind turbine, fuel Cell (Residential Fuel Cell and Microturbine System), or solar systems can expect a tax break of 26% off the total cost.
Eligibility:
To be qualified for this tax credit you must own a house either under construction or fully built. Principle residences and secondary homes are also eligible. Rentals do not count.
To Apply:
To apply for energy rebates or residential energy credits you need to use the latest Form 5695 to calculate your total exemption and attach it to your 1040 or 1040NR tax form. Instructions here: https://www.irs.gov/pub/irs-pdf/i5695.pdf
In 2018, under the Budget Act, renewable energy tax credits were set to decline to 22% starting in 2021, before totally expiring in 2022. This is a limited time opportunity to fully take advantage of the federal tax savings before they are gone.
