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Federal energy tax deductions are in place to help transition our technologies away from the old model of doing things which was lacking in consideration for elements we now understand, and towards a new model that is smarter, cleaner, and better for both industry and consumer alike.

One thing you can do however, at the VERY LEAST, is to turn off lights that you’re not using, don’t run the faucet on FULL BLAST for every little crumb that you want to clean off of a plate. Other small things like this make a HUGE difference when you figure in people by the millions.

Federal energy tax deductions should in fact make a difference. Federal energy tax deductions are nothing new. The EPA has been working with Department of Energy since 1996 to help provide incentives for home owners and businesses to make their spaces more environmentally friendly.

I would like to explicitly state that technically what we’re talking about here are federal energy tax credits, and they don’t apply to buildings currently under construction or rented homes. Credits and deductions 101 states that a credit is typically “better” than a deductions because it directly reduces actual taxes instead of simply reducing taxable income.

The federal energy star tax credit counts for:

  • Heating, ventilating, air conditioning
  • Biomass stoves
  • Insulation
  • Roofs
  • Tankless water heaters
  • Energy efficient windows and doors

There are some other qualifying subjects as well, like geothermal heat pumps, small wind turbines, and solar energy systems. You get to claim one energy credit for appliances, and one for the pumps and turbines and solar systems. (as in, choose one out of the three) Sadly, the federal energy tax credit was reduced after its initial installation and is now only worth $500. Which means that you get 10% on costs up to $5,000 dollars.

You can claim your energy tax deduction here.


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