Building energy-efficient homes has become more popular than ever, with many homeowners having made improvements throughout the year. If you made changes to your home to reduce energy usage, remember to take these changes into account when you file your taxes. You may be eligible for a tax credit.
The energy efficient improvements tax credit has been offered for several years by the federal government, but it is important to note that this is a credit, not a deduction, so it will decrease the actual amount of your taxes rather than just decreasing your taxable income. For most home improvements, the credit is equal to 10 percent of the cost of the materials. This can add up to quite a sum if you completed a big project like upgrading to spray foam insulation or installing solar panels. Even energy-efficient appliances, such as new water heaters or pellet stoves, can be included.
Didn't make any upgrades in 2016? Make 2017 the year you create a more sustainable, energy-efficient living space. Visit NCFI Polyurethanes to find a contractor in your area who specializes in building energy-efficient homes with spray foam and other sustainable building materials.