Thinking about making your home more energy efficient? Wondering how much it will cost you and how you can recover your investment? You are not alone. Many homeowners ask themselves these same questions, and fortunately, we are here to offer some guidance. There are tax credits available to Minnesota homeowners through the Non-Business Energy Property Tax Credit. As of January 2020, the credits have been retroactively extended from 12/31/2017 through 12/31/2020.
What Does This Mean for You?
As a Minnesota homeowner, you can take a tax credit for energy efficiency work and/or purchases through December 31st of this year. Additionally, if you have made any purchases or had any work done between December 31st of 2017 and now, those also qualify for the tax credit. The credit is 10% of the cost of up to $500, or a specific amount from $50-300.
What Are the Requirements?
This tax credit is only available in existing homes and for your primary residence. This means that newly constructed homes and rental properties do not apply. The energy efficient work or purchase also must be made before 12/31/2020.
What Products/Services Are Included?
Some examples of energy efficient products that meet the requirements for tax credit include:
-Air conditioners recognized as Energy Star (Tax credit amount: $300)
-Gas and oil furnaces certified as Energy Star (Tax credit amount: $150)
-Advanced Main Air Circulating Fan (Tax credit amount: $50). This product has an additional requirement of using no more than 2% of the furnace’s total energy.
-Heat pumps that are Energy Star certified (Tax credit amount: $300)
How Can You Verify That Your Purchase Meets the Requirements?
To verify tax credit eligibility, ask your HVAC contractor to provide the Manufacturer Certification Statement for the equipment you plan to purchase.
Want to Know More About Which Energy Efficient Product is Right for You?
To learn more about the energy efficient products and services that are right for your home, contact us today! Our professionals will answer all your questions and guide you through this process.