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Ken's Weekly E-Tip: Federal Energy Tax Credits

The April 15 tax dead line is quickly approaching. Congress has extended some energy tax credits for home  improvements completed up to Dec. 31, 2016. This will be everyone's last chance to take advantage of them. Credit refunds fall into three categories:

  • 10 percent of material costs up to a $500 refund.
  • Specific dollar refund amount.
  • Renewable Energy Systems.

Improvements must be made to an existing home or principal residence between Jan.1, 2011 and Dec. 31, 2016. New construction or rentals do not qualify.

 

Material Costs 

The following improvements receive a 10 percent tax credit on material costs only (labor not included) up to 10 percent:

 

Specific Dollar Amounts

The following improvements receive a specific dollar credit amount between $50 and $300:

 

Renewable Tax Credit 

A 30 percent tax credit is available on the total installed cost (labor included) for the following items through Dec. 31, 2016:

Principal residence (existing or new construction) qualify. Rental or second homes do not qualify.

 

Necessary Verification

The federal government requires all qualifying heating and cooling improvements to meet certain energy efficiency standards. AHRI (Air Conditioning, Heating & Refrigeration Institute) is the gold standard energy efficiency rating agency. Ask your heating and cooling contractor to supply you with your equipment's AHRI certification label or contact the equipment manufacturer. 

AHRI certification documents are not required for tax filing submission, but should be kept by homeowner for possible tax auditing.

 

Other Considerations

Please note that $500 is the total energy tax credits allowable to be claimed (back to 2006). The exception is that renewable tax credits can be taken in full. 

IRS form 5695 must be completed with your federal 2016 tax submission. Please check with a qualified tax adviser if you have any further questions. Don't let this opportunity pass you by!

 

Earn $50 Bill Credit

Let CEC install a load control device on your electric water heater and earn a $50 one-time bill credit and a monthly $2.50 bill credit. Load management helps stabilize future power costs. Over $350,000 was saved in 2013 by member participation in this program. It also improves reliability by taking demand stress off of our distribution system at critical times. Call 800-521-0570 x2195 to learn more. Members having a water heater installed by the cooperative are not eligible for the credits.

 

Twitter and Load Control  

Participants in our load control program for electric heat and water heaters can find out when and how long control periods are predicted by logging onto www.central.coop and clicking our Twitter logo. Please remember that these are only predictions and actual times may vary.

 

Energy Efficiency Seminar

Energy efficiency seminars are available for schools and organizations that cover such topics as lighting, insulation and building infiltration. The programs lasts about 30 minutes and can be scheduled by calling 800-521-0570 x2133 or email kmaleski@central.coop.

 

Ideas?

If you have any ideas for future E-Tip topics, email me at kmaleski@central.coop.

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