Yes! It’s true. After telling us that the federal energy tax credit days were over, the government decided in January of 2015 to allow them for some products installed in 2014. No word on 2015.
If you did some energy upgrades like high efficiency heating, cooling, insulation, windows, doors, a boiler or a tankless water heater in 2014, this free money could be for you!
Only the most energy efficient products can quality for federal tax credits. Here’s a short list, and the full details can be found at EnergyStar.gov. Contact your tax preparer or the IRS to determine your complete eligibility.
What is a federal energy tax credit? This is a credit you can take against taxes owed on your 2014 federal income tax form. The IRS previously had a restriction about how many of these credits you can take. We did not see anything published about that this year, so be sure to ask your tax preparer.
What is the amount of the 2014 tax credit? (source: energystar.gov)
- Windows/Doors: 10% of material cost up to $500, windows have a max of $200. Excludes installation portion of cost. Must be EnergyStar rated. (All of ours are).
- Insulation/Sealing: 10% of material cost up to $500, excludes installation cost.
|HVAC & Water heater system requirements to qualify:
|Air Source or Ductless heat pumps $300:
||HSPF >= 8.5, EER >= 12.5, SEER >= 15
|Central Air Conditioning $300:
||SEER>= 16; EER >= 13
|Gas, Propane, or Oil Water Boiler $150:
||95% AFUE or higher
|Gas, Propane or Oil Furnace: $150:
||95% AFUE or higher
|Advanced Main Air Circulating Fan* $50:
||uses 2% or less of furnace’s total energy
|Gas, Oil, Propane Water Heater $300:
||EF >= 0.82 OR a thermal eff. 90%.+
|Electric Heat Pump Water Heater $300:
This can be an added bonus on top of the great energy savings and comfort you can expect when you upgrade your heating, cooling, and water heating plus exterior products. If you are a Washington Energy customer, we can provide you with any product information your accountant requires for this tax credit.
*An Advanced Main Air Circulating Fan is an efficient fan, or blower motor which blows the air that your furnace heats up through the duct system. Requirements : Must use no more than 2% of the furnace’s total energy.