Taking Advantage of "Energy Efficent" Tax Credits

Energy efficient tax credits offer a great way to transform your home into an eco-friendly living space without breaking the bank. Green living not only helps the environment, but it can also save you lots of money

Examples of Energy Efficient Tax Credits

Here are a few of the most popular energy efficient additions that can result in generous tax credits:

  • Solar power panels

  • Energy-saving appliances

  • Energy-efficient skylights

  • Eco-friendly air conditioner

  • Energy-efficient water heater

A Cost Analysis of Green Living

The amount you can save on an eco-friendly home depends on the state in which you live. Most states offer green savings that reduce the homeowner's costs by 40 percent or more. For example, New Jersey’s generous energy efficient tax credits can pay for over 85% of a home's solar unit. So, if a rooftop solar unit is priced at $37,000, federal and state tax credits could knock the price down to less than $3,500. This savings doesn’t include the monthly savings you’ll see in your energy bill.

Some states go so far as to compensate eco-friendly homeowners for the solar power they generate. In this way, most homeowners using solar power will regain the cost in about three years, if not earlier. Check with your local energy provider for more information about energy efficient upgrades.

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