Home Energy Efficiency Improvement Tax Credits

Home Energy Efficiency Improvement Tax Credits

Home Remodeling & Repair in Minnesota  

About Tax Credits
A tax credit is generally more valuable than an equivalent tax deduction because a tax credit reduces tax dollar-for-dollar, while a deduction only removes a percentage of the tax that is owed. You can itemize purchases on your federal income tax form, which will lower the total amount of tax you owe the government.

Home Energy Efficiency Improvement Tax Credits
If you purchase and install specific products, such as energy-efficient windows, insulation, doors, roofs, and heating and cooling equipment for your home you can receive a tax credit for 10% of cost up to $500 or a specific amount from $50 – $300.

  • Expiration: December 31, 2011
  • Eligibility: Must be on an existing home & your principal residence.   New construction and rentals don’t qualify.
  • Reduced max credits: Some items have reduced maximum tax credits now as well.

 See EnergyStar.gov’s Federal Tax Credits for Energy Efficiency for a complete summary of energy efficiency tax credits available to consumers.

Residential Renewable Energy Tax Credits
If you install a solar energy system (including solar water heating and solar electric systems), small wind systems, geothermal heat pumps, and residential fuel cell and microturbine systems can receive a 30% tax credit for systems placed in service before December 31, 2016; the previous tax credit cap no longer applies.

What Products Are Eligible For The 2011 Home Improvement Tax Credit?

  • Biomass Stoves
  • Heating, Ventilating, Air Conditioning (HVAC)
  • Insulation
  • Roofs (Metal & Asphalt)
  • Water Heaters (non-solar)
  • Windows & Doors
  • Geothermal Heat Pumps
  • Small Wind Turbines (Residential)
  • Solar Energy Systems
  • Fuel Cells (Residential Fuel Cell and Microturbine System)

To claim the energy efficient products tax credit, you’ll need to claim the credit on your 2011 taxes in 2012.

See Minnesota’s Incentives for Renewables & Efficiency for programs available in your area.

  • PACE Financing
  • Performance-Based Incentive
  • Property Tax Incentive
  • Sales Tax Incentive
  • State Grant Program
  • State Loan Program
  • State Rebate Program
  • Utility Grant Program
  • Utility Loan Program
  • Utility Rebate Program
  • Weatherization Assistance Program