Most people have a basic idea about the benefits of energy efficient products. There’s even more incentive to use green products because the federal government provides tax credits for selected items. Isn’t it a good time to upgrade your home in Dunkirk real estate? From 2012 up to December 31, 2016, home owners can claim tax credits for geothermal heat pumps, small wind turbines for residential purposes, solar energy systems, and fuel cells. Let’s take a brief look.
For solar energy systems, residential wind turbines, and geothermal heat pumps, the tax credit is 30 percent of cost and there’s no upper limit. New construction, existing homes, principal and second homes qualify but not rentals. A typical solar water heater consists of a collector and a storage tank. The water is heated by the sun’s thermal energy. A wind turbine stores the wind’s kinetic energy and transforms it into electricity. Unlike ordinary heat pumps, geothermal heat pumps use the earth’s natural heat to provide hot water, air conditioning, and heating.
The tax credit for fuel cells is 30 percent of the cost, and the limit is $500 for each 0.5 kW of power capacity. New construction, existing homes, and principal residences qualify but not second homes and rentals. The most common fuel cells work by converting the chemical energy of hydrogen into electricity. For more information on the requirements and how to apply for these tax credits, check out the page at Energy Star.