This post will outline the various option for energy related remodeling incentives that are available in Massachusetts. Incentives such as the “Federal Tax Credits for Consumer Energy Efficiency” are well publicized and offer an effective way to offset the costs associated with improving the energy efficiency of your home. Other incentives are also available from the state and local energy providers. Here is an outline of a few of the options that are available for rebates, financing, tax credits and tax incentives. There are also links to additional information at end of the post.
Homeowners can deduct 30% of the cost up to $1,500 for projects in these categories below. These credits can be used for your primary residence and expire at the end of 2010.
- Windows and Doors
- Biomass Stoves
- Heating, Ventilating, Air Conditioning (HVAC)
- Water Heaters (non-solar)
The following renewable energy projects are eligible for deduction 30% of the cost with no upper limit. These credits can be used for your primary or secondary residence and expire at the end of 2016.
- Geothermal Heat Pumps
- Small Wind Turbines
- Solar Energy Systems
Homeowners may deduct 30% of the cost for fuel cells up to $500 per .5 kW of power capacity. These credits can be used for your primary residence and expire at the end of 2016.
In addition to the federal incentive, there are a number of other options that are available from the state and your local energy provider. These incentives include:
- Rebates for the installation of insulation
- Energy Efficient Mortgages
- Residential Renewable Energy Income Tax Credit
- Rebates for energy efficient appliances, solar and wind energy, thermostats etc.
- Special financing options for energy related projects.