The federal government is offering attractive tax credits for home improvements that contribute to energy savings through the end of 2016. If you’ve considered investing in your home to increase its comfort and value, this fall could be an opportune time to make qualifying upgrades.
It's not too early to be thinking about your 2013 taxes. After all, the actions you take this year affect the tax bill you'll have to pay next spring. One of the ways you can reduce your tax obligations come tax day is to take advantage of the federal energy tax credits. If you've been thinking about upgrading your air conditioning system, it makes sense to act this year.
Back in 2009, tax credits for energy efficiency upgrades were enacted as part of the American Recovery and Reinvestment Act. These tax credits motivated Americans across the country to replace old, inefficient equipment with new high-efficiency HVAC systems, with consumers taking advantage of $290.7 billion in tax credits. The credits expired at the end of 2011, but Congress has reinstated them as part of the "fiscal cliff" agreement of January 2013. Learn the terms of the tax credits for energy efficiency upgrades, and how to qualify.
Geothermal heating and cooling systems are the most energy-efficient home comfort systems you can buy. Rather than burning fossil fuels for heating or using ozone-depleting refrigerants for cooling, a geothermal heating and cooling system uses renewable (and free) heat from the earth.
For homeowners who want the best and most cost-effective heating and cooling system possible, geothermal heat pumps offer extremely high levels of efficiency and monthly savings on home comfort expenses. They can be as much as 50 percent more energy efficient than even high-efficiency furnaces, and can reduce your seasonal heating and cooling bills by as much as 70 percent. In addition, geothermal heat pumps run quietly and cleanly, they waste very little energy, and they are very environmentally friendly, producing no harmful exhaust or emissions.