A 2020 Pew Research Report found that many Americans had consistent concerns about the climate and environment, and that report has led many to rethink energy efficiency in their own spaces. More people than ever are buying energy efficient homes or making key upgrades to their own homes to make them more energy efficient, but this comes at a financial cost. As a result, many look to tax credits to help lessen that cost. There are several energy efficient home tax credit options available that you can take advantage of during the next filing season.
What Is an Energy Efficient Home?
Not quite sure what qualifies as an energy efficient home? There are actually several features that set these homes apart. It begins with the home’s thermal envelope – or the elements that help to shield it from the outdoor space. That means better assemblies when it comes to walls and roofs, stronger insulation, and better windows. Some of those things can be accomplished by addressing problems within existing structures, and some of them can only be addressed with new construction homes.
The changes don’t stop there, though, when it comes to energy efficient homes. They also have better heating and cooling systems that are designed specifically for efficiency. Often homes have systems that are simply too large or too small, but energy efficient homes are careful about the HVAC systems that are installed to help heat and cool only as necessary.
Energy efficient appliances are also generally part of the package. Appliances can be energy hogs, but choosing those that are Energy Star rated can help homeowners not only save on overall energy costs, but also ensure they leave behind a smaller carbon footprint.
Energy Efficient Home Tax Credits
Ensuring you use less energy may pay off when it comes to your conscience, but it can pay off when it comes to your wallet too. There are a number of tax credits you can consider if you’ve bought an energy efficient home or made energy efficient upgrades to your existing home.
- Energy Efficient Home Credit: The Federal Energy Policy Act of 2005 offers builders OR buyers up to $2,000 for homes that were built in the U.S. before December 31, 2021. While this credit won’t last forever, it offers builders a chance to pass on some savings to buyers.
- Tax Credits for Residential Renewable Energy Products: This option is available through December 31, 2023, and it can be used for those people who installed small wind turbines, fuel cells, and geothermal heat pumps, as well as solar energy systems.
- Federal Solar Tax Credit: If you’ve installed a solar voltaic system, you can also qualify for a federal tax credit. This action must have been taken prior to the end of 2022, though, to qualify.
It’s important to note that many state governments also offer a variety of different tax credits of which you can consider when you prepare to file your taxes.
If you’re ready to see some energy efficient home examples and start the savings process, contact us today for a full line of the best energy efficient homes in Florida.