Cashing in on Energy Rebates and Tax Credits

March 11, 2014 by Valerie Griffiths

tax-creditWith tax season upon us, don’t forget to consider any energy efficient purchases or upgrades you made in 2013! Many eco-friendly products qualify for tax credits or rebates, so it’s important to do your homework and cash in on them. Some common purchases that may qualify include:

  • Insulation
  • Water heaters
  • Windows and doors
  • Heating, ventilating and air conditioning (HVAC)
  • Ceiling fans
  • Refrigerators and freezers
  • Metal and asphalt roofs

You may be familiar with the ENERGY STAR information displayed on many products. It’s usually found on a bright yellow label indicating energy efficiency, your estimated yearly energy costs and potential savings. The ENERGY STAR program promotes energy efficiency and helps consumers save on energy costs. It’s backed by the U.S. Environmental Protection Agency.

Still, just because a product is ENERGY STAR qualified, it does not mean it’s automatically eligible for tax credits. The ENERGY STAR information simply shows the consumer how much they will save in energy costs over time if they purchase the product, without a tax credit.

Wondering whether you’ll receive a credit or rebate? Visit the Energy Star website. This search will return ENERGY STAR results based only on the products you’ve purchased in the past year.

Here is a link to research Federal Tax Credits for Consumer Energy Efficiency that may apply to you, including:

  • Tax credits of 10% of the cost up to $500 on HVAC, insulation, roofing, water heaters, windows and doors and biomass stoves
  • A tax credit of 30% of the cost (no limit) for geothermal heat pumps and solar energy systems

There are also some great Rhode Island rebates that may apply:

  • National Grid is offering a mail-in rebate for the recycling of freezers and refrigerators. Buy an ENERGY STAR qualified refrigerator and freezer and receive a $50 incentive
  • National Grid is offering markdown programs for ENERGY STAR qualified LED and CFL light bulbs
  • Receive $200 mail-in rebate from National Grid for high-efficiency clothes dryers
  • Insulation purchases recommended by Energy Specialists may qualify for an incentive of 75% of the cost, up to $2,000.

A little research can add up to big savings throughout the year. Save your receipts, and stay informed on tax credits and rebates that apply to you!