Tax Credits

Tax Credits Speed Return on Investment

Federal tax credits and grants can help make energy efficiency and renewable energy investments pencil out. Qualified high-efficiency equipment, “whole-building” energy efficiency projects and some renewable energy equipment may be eligible. Builders that construct high-performance homes, energy-efficient appliance manufacturers and companies that manufacture products for advanced energy production may also qualify.

Energy Efficiency & Renewable Energy Tax Credits

The Tax Incentives Assistance Project (TIAP) provides resources to help you take advantage of federal income tax incentives for qualifying energy efficiency and renewable energy investments. Congress first passed the incentives in 2005 as part of the Energy Policy Act of 2005 and has amended them several times since then.

TIAP is sponsored by a coalition of public interest nonprofit groups, government agencies and other energy efficiency organizations in the energy efficiency field. 

For more information, please visit the TIAP website.


Steps to Take Smart Energy Action

Visit the TIAP website for information about tax credits for businesses and builders and manufacturers. You can also find helpful information on the TIAP FAQ page.

The TIAP website includes information on tax credits for following types of energy-efficient and renewable energy investments:

  • Commercial buildings – Deductions for new or renovated buildings that save 50 percent or more of projected annual energy costs for heating, cooling and lighting compared to model national standards. A lower deduction is available for efficiency improvements to lighting, HVAC and water heating, or envelope systems
     
  • Commercial vehicles – Credits are available to businesses for heavy-duty, hybrid gasoline-electric vehicles
     
  • Combined heat and power – Investment tax credits for combined heat and power systems
     
  • On-site renewables – Tax credits for qualified solar water heating and photovoltaic systems and for certain solar lighting systems
     
  • New homes – Home builders are eligible for tax credits for homes that exceed national model energy codes by 50 percent, subject to certification. Manufactured home producers are also eligible for a smaller credit for manufactured homes that exceed national model codes by 30 percent or that meet ENERGY STAR® standards
     
  • Appliance manufacturing – Tax credits are available to manufacturers of high-efficiency refrigerators, clothes washers and dishwashers

This list is subject to change on an ongoing basis, depending on federal tax policies. 

Please note that TIAP cannot provide tax advice. Please contact a tax professional with questions specific to your situation.