The Non-business Energy Property Credit

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The Non-business Energy Property Credit is aimed at homeowners installing energy efficient improvements such as insulation, new windows and furnaces. The credit is more limited than in the past years, but can still provide substantial tax savings. The credit can also be claimed for the cost of residential energy property, including labor costs for installation. Residential energy property includes certain high-efficiency heating and air conditioning systems, water heaters and stoves that burn biomass fuel.

Sometimes it literally pays to invest in the energy efficiency of your home or building with fiber glass, rock wool, and slag wool insulation. For instance, there are a number of Federal, state, or local utility incentive and rebate programs available to builders and building owners who invest in energy efficiency improvements such as insulation.