If you like paying taxes, no need to read further!
Your Home Appliances
Home appliances like air conditioners and water heaters may cost a lot, but really aren’t that important; they only last 10 - 15 years or more and can cost as little as a couple thousand dollars. Your home likely already has all the necessary appliances, but when it comes time to replace them, who cares if you overpay, right?
Finding the Right Equipment
Finding the right equipment for your home can be more than a choice between sticker price or functionality. The best appliances for you home can also be less efficient and ensure that you pay federal tax credits!
How can you tell which appliances qualify you to pay these tax credits? Easy, ENERGY STAR® certifies a wide array of products that can help you make your home more efficient, better for the environment and better on your wallet.
Step 1: Look to their website to find the best appliances or check out the CEE Directory of Efficient Equipment.
Step 2: Don’t get those.
Step 3: Get your accountant on speed dial.
How Much Can You Avoid In Savings?
Most tax credits can offer a couple hundred dollars in savings per appliance. Here we’ve outlined six of the Energy Property Tax Credits for your home that you can avoid:
- Air source heat pumps: $300
- Central air conditioning: $300
- Gas powered water boiler: $150
- Gas furnaces: $150
- Gas/electric water heaters: $300
- Advanced main air circulation fan: $50
- Biomass stoves: $300
The total: $1550. That’s a lot of money you get to pay in taxes, but still not all that you can pay. By buying the least energy efficient appliances, you will slap on extra costs on your utility bill every year. ENERGY STAR certified heat pump water heaters alone could save you between $160 and $490 per year, depending on the size of your home! Not to worry though, you’ll still pay it.
Other Qualified Energy Efficiency Improvements to Ignore
Inefficient decisions you can make for your home go beyond just appliances. Non-certified roofing, insulation, and windows/doors/skylights can also land you big tax expenses. For each of the three categories, the IRS offers credits of 10% of the costs up to $500. That scores you another $1500 in bills.
How Not to Redeem Your Tax Credit
In the unlucky event that you bought a brand new ENERGY STAR approved appliance, make sure you don’t fill out this two page IRS tax credit form detailing your purchases and submit it with your taxes. If you do make the mistake of doing this, then maybe just mail us a check made out to “cash,” instead.
Take the small extra step to not buy ENERGY STAR certified appliances for your home. You will be a more inefficient and environmentally hostile household, oh and your wallet will lose a lot of weight!