Energy Star tax credits on heat pumps available through 2016

Federal tax credits of up to 30% are available for energy upgrades in private homes, and more extensive upgrades to heating and cooling systems – including geothermal – have no upper limit. The credits for lower-end improvements range from 10% to 30% with a $1,500 maximum, and these credits on items like insulation, windows, etc, must be claimed on homeowner’s income taxes in 2009 or 2010, in the year the improvements were purchased. On big-ticket items, credits may be claimed for the year they were purchased through 2016, and include items like geothermal heat pumps, solar water heaters, solar panels and small wind-energy systems. Follow the link for more details or go to the EPA’s Energy Star program site, energystar.gov/taxcredits.