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You could be eligible for federal or state incentives through 2016 if you install energy-efficient equipment.
You’ve probably heard that investing in an environmentally friendly HVAC or electrical system can actually save you money. But generating your own power with solar, wind or geothermal systems saves more than just utility bills. Various state and federal tax credits in 2015 can seriously cut down the cost of a system.
The same systems that were incentivized a few years back are becoming mainstream today. Incentives are changing, but they still exist — and if you’ve had a new system installed in the past year or plan to do so next year, you may be eligible to reap the benefits.
Federal energy efficiency tax credits
Homeowners who install the following types of Energy Star HVAC or energy systems are eligible to receive a federal tax credit of 30 percent:
For residential tax credits, this is the big one. It has no upper limit and pays back nearly a third of the cost of a system that may run tens of thousands of dollars.
But the window is closing on these energy efficiency tax credits; they expire on Dec. 31, 2016. If you wait until after that to install an energy-efficient system, you could be leaving a lot of money on the table.
Earlier incentives that offered credits for Energy Star appliances or home improvements under the American Recovery and Reinvestment Act expired at the end of 2014. A certified tax accountant can help you best determine your available options.
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State rebate programs
Various states offer their own energy rebate and tax incentive programs.
You can find a full, searchable list of energy-efficient tax credits, rebates and savings at Energy.gov.
Keep in mind when checking this list that several of these incentives — including the AEP Ohio residential energy efficiency program — expired on Dec. 31, 2014, and you will not be eligible to receive them in 2015.
Rebates for Ohio residents
In Ohio, residents can receive several state-specific rebates for installing energy-efficient HVAC systems. Statewide energy efficient loan and rebate programs include:
● Butler Rural Electric Cooperative maintains a utility rebate program covering new installs and replacements of geothermal systems, dual-fuel heating systems and air-source heat pump systems.
● Consolidated Electric Cooperative also offers a rebate program on electric water heaters, duel-fuel heat pumps and geothermal heat pumps.
● Dayton Power and Light offers rebates on geothermal heat pumps with a minimum EER of 16, as well as air conditioner and air-source heat pumps with a SEER of 14 or above.
● Duke Energy provides incentives through the Smart $aver program, including a rebate on geothermal heat pumps with an EER of 10.5 or more.
Need help on a new HVAC system?
Your local HVAC contractor can advise you on which systems are eligible for rebates and install them properly for you to help ensure your investment is a long-lasting one.
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Have you received a tax credit for an energy-efficient system? Or are you still planning on one? Sound off in our comments below.
Editor's note: This is an updated version of an article originally published on Feb. 4, 2015.
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