Home Improvements and Tax Credits

Homeowners in South Carolina enjoy the potential benefits of both sides of the energy improvement balance: the mild climate allows for cost effective upgrades to improve their homes’ energy efficiency, and that same climate also makes renewable energy systems especially productive. Even better news: many of these upgrades and improvements may be eligible for tax credits!


If you invested in energy upgrades for your home in the last few years, check to see if they are eligible for tax credits before filing your 2016 tax return.

To employ these tax credits, use IRS form 5695.
(Some incentives expired in 2016; for a list of currently available rebates and credits, click here.)

Efficiency Improvements

Residential Energy Efficiency Tax Credit
For purchases made in 2011 – 2016, up to a combined $500 total for all years:


Air source heat pumps: $300 credit
Central air conditioning: $300 credit
Gas, propane, or oil hot water boilers: $150 credit
Gas, propane, or oil furnaces and fans: $150 credit for furnace, $50 for main air-circulating fan
Insulation: Up to $500 or 10% of the cost, whichever is lower
Roofs: 10% of the cost up to $500
Electric water heaters: $300 credit
Windows, doors, and skylights: 10% of the cost, up to $200 for windows and skylights; up to $500 for doors

For details and specification requirements of the Residential Energy Efficiency Tax Credit, click here.

Renewable Energy

Residential Renewable Energy Tax Credit
For purchases made in 2006 – 2016 (for solar, through 2021):


Solar Electricity: a tax credit worth 30% of the cost of installation
Solar Water Heating: a tax credit worth 30% of the cost of installation
Fuel Cell: a tax credit worth 30% of the cost of installation, capped at $500 per half kilowatt
Wind Energy: a tax credit worth 30% of the cost of installation
Geothermal Heat Pump: a tax credit worth 30% of the cost of installation

For details and specification requirements of the Residential Renewable Energy Tax Credit, click here.

 

Leave a Reply