Tax credits available for energy efficiency improvements

Image of homeowners installing energy efficient windows.
Installing energy efficient windows. Photo by iStock February 26, 2013
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If you have made energy efficient upgrades to your home, you could be eligible for some tax relief.

The American Taxpayer Relief Act of 2012 retroactively renewed the federal energy efficiency tax credit for homeowners who made qualifying improvements in 2012 or 2013.

The credit can mean up to $500 of cash in your pocket. This means up to:

  • $500 for insulation and air sealing materials.
  • $200 for windows, doors and skylights,
  • $500 for cool roofing products,
  • $150 for high efficiency heating equipment
  • $300 for high efficiency air conditioners
  • And more…………


How Can I Take Advantage of the Tax Credit?

Energy Star LogoLook over any improvements you made recently, even if you received incentives from the County or State, to determine if you are eligible for money.

  • If you made energy efficient improvements in 2011 or 2012, but did not use the credit, you may be able to get some cash back.
  • If you did not make improvements in the past but are considering them in the future, 2013 would be a great year to get started.  The credit is expected to expire again at the end of this year. 

For information on specific standards and requirements, visit the Energy Star webpage on the tax credit’s specific requirements.

There are rules to the Taxpayer Relief Act’s tax credit for consumer energy efficiency, such as most improvements must meet certain efficiency standards. Further, the tax credit is limited to $500 total, so you are not eligible for tax relief in 2013 if you received $500 in credit in 2012, and so on. When in doubt, consult your tax professional.

Find more ideas to improve your energy efficiency (and potentially get the 2013 credit), by checking out the My Green Montgomery projects tab.

Article by Eric Coffman, Senior Energy Planner, Montgomery County Department of Environmental Protection

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