Making changes to your home to improve the energy-efficiency of the home can not only save you money on energy costs, but it can even allow you to save money on your taxes. There are caps on the maximum amount of tax credits you can receive, but you should take steps to maximize these credits. 

Solar Panels 

You may take credit for the installation of a solar panel. By doing so, you are able to place less burden on the power grid and you will be placing less strain on the environment since solar panels simply rely on sunlight. The electricity that you use for your solar panel must be used in your home. In addition to generating electricity, you may use solar panels to heat the water used in your home. The water heated by the solar panels must be used inside your home. 

Geothermal Heat

You may be able to generate heat and electricity from heat found underground, at a much lower cost to yourself and to the environment. However, it can be expensive to reach geothermal heat. However, if you use this resource in your home with a geothermal heat pump, you may qualify for tax credits as a result. 

Wind Turbines and Fuel Cells

Wind turbines and fuel cells used for your home can make you eligible for a tax credit. Whether or not you will be eligible will be based on how many kilowatts are generated. For example, the wind turbine must generate 100 kilowatts of power.

Timing is Everything

Regardless of the home improvements, the sooner that you have these improvements installed, the greater the discount you will receive. For example, property placed in service before January 1st, 2020 will be eligible for a 30% tax credit, while property placed in service afterward might be eligible for a smaller tax credit. But regardless of when you have your property serviced, you'll be eligible for something.

Don't Miss Tax Credits

If you are not certain about what you can claim as a tax credit, make sure to contact a tax preparation service. These services will allow you to maximize your tax return or reduce the amount that you'll owe to the government. You'll also reduce the odds that you'll pay fines. Home improvements to increase energy-efficiency may come with upfront costs, but it's much easier to afford these upgrades when you are working with a tax preparation service.

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