Financial Incentives of Going Green
Following last week’s withdrawal from the Paris Climate Accord, there have been many discussions on energy efficiency and housing sustainability. Environmental preservation and protection efforts are not limited to international decrees, and can start right at home. Here are three ways homeowners can reduce carbon emissions and also save some money.
Under the Residential Energy Efficient Property Credit, homeowners who install solar roof panels are eligible for a tax credit anywhere from 22-30% of the installation cost until 2021. Incentives vary from state to state. Visit the Database of State Incentives for Renewable Energy for more information.
Some plug-in electric cars are eligible for a federal tax credit up to $7,500. Some of the cars that may qualify are the Chevy Bolt and Volt, BMW i3, and Tesla Models S and X. The value of the tax credit depends on the type of battery in the vehicle and the manufacturer. Consult a financial advisor for more information on your specific vehicle.
Nonbusiness Energy Property Credit
Homeowners who pay for qualified energy-efficient improvements to their home may be eligible for a credit of up to 10% of the cost of the modifications. Types of improvements range from adding insulation, energy-efficient exterior windows and doors, and roof modifications.
Energy-efficient upgrades can cut utility costs and also be eligible for tax breaks. Homeowners who do their part help themselves and their neighbors. Sustainable housing builds sustainable communities.
Sources: Consumer Reports, Forbes, IRS