As part of the “fiscal cliff” legislation signed into law early this year, Congress provided a number of 2012 and 2013 tax credits for home energy efficiency improvements. These tax credits, coupled with financial incentives available for energy efficiency improvements, make right now a lucrative time to invest in home energy efficiency.
You’ll get twice the deal when you take advantage of an incentive program from Energy Impact Illinois, an alliance to help Illinois residents lower energy costs. The program helps you reduce energy bills and also provides financial incentives to make recommended improvements to your home. If you enroll in the program and install energy efficiency measures this year, you’ll receive an instant rebate of up to $1750 from Energy Impact Illinois and your local utility and, you can now also claim a credit of up to $500 for the very same improvements, so long as the improvements are eligible under the tax extension.
Example: Say you spend $3,000 on energy efficiency improvements this year via Energy Impact Illinois. You’ll receive an instant rebate of $1,750. Your out-of-pocket cost is now $1,250. If all the improvements made are eligible under the extension, you’d qualify for a tax credit of 10% of this total cost, for a tax reduction of $125 when you next file your taxes. What a bonus!
The credit also benefits past participants of Energy Impact Illinois, as it extends to improvements made between Dec. 31 2011, and Dec. 31, 2013. In addition to work you do this year, you can deduct eligible improvements you made to your home last year.
Keep in mind that only certain measures are eligible. The Tax Incentives Assistance Project provides information on eligible improvements, how to qualify, resources to find out more on qualifying products, and IRS forms. And, be aware that you will not see the money until your next tax return. And, of course, consult with your tax advisor for details on your situation.
For more on Energy Impact Illinois, call 1-855-9-IMPACT (1-855-946-7228).