Home / News / Expiring Energy Saving Tax Credits & Rebates
In accordance with the American Tax Payer Relief Act of 2012, owners of existing homes can receive tax credits of up to 10% of the cost of components when upgrading the efficiency of their building's envelope and components. Many products not only slash a homeowner’s energy bill, but also perform better and reduce the energy/pollution impact on the environment.
The federal government offers homeowners lots of different tax credits to create more energy efficient dwellings and businesses, including credits on water heaters, furnaces, boilers, heat pumps, central air conditioners, building insulation, doors & windows, roofs, circulating fans for furnaces, energy star appliances and much more. But all products must be installed on or before December 31, 2013, for the credits to apply.
The following three product categories are eligible for a tax credit of 30% of the cost with no upper limit until December 31, 2016. These can be used on new or existing homes, and a principal residence or second home would both qualify (but not rentals).
For the roofing industry, the tax credit for insulation as well as metal and asphalt roofs is 10% of cost, up to $500. A good contractor should be able to help the homeowner meet the requirements of installing a metal roof with appropriate pigmented coating or an asphalt roof with appropriate cooling granules that also meet ENERGY STAR requirements. Please note that the tax payer is ineligible for this tax credit if this credit has already been claimed by the taxpayer in an amount of $500 in any previous year.
In addition, local energy companies like APS offer incentive rebates. So check with your energy supplier to see what credits might be available to you.
By going to www.energy.gov, you can find out what tax credits and rebates apply in Arizona. There is also a terrific list on http://www.energysavvy.com/rebates/AZ/city/phoenix that shows you what is available in Arizona from companies like APS, etc.
Please check with your CPA or accountant to obtain more information about local policies & incentives, as well as instructions and information on what forms to submit for rebates and credits.
