Tax Credits for Green Improvements
It’s no secret that making energy improvements to your home can sometimes be a costly proposition – especially if you are undertaking a big project such as using an alternative power source (such as solar). But even smaller projects like replacing older less efficient windows or adding insulation can be expensive compared to their payback periods.
To help offset these costs, there are several programs from the federal and state governments, and yes, sometimes even your local power company. We are fortunate in North Carolina to have a very generous program that can be used in conjunction with the Federal tax rebates.
Here is a quick summary of the programs:
Federal: 30% of your improvement can be applied as a tax credit. (This is essentially a 35% discount off of the cost of the improvement.) See this link for details.
State Programs: The NC tax system also acts favorably toward green improvements. You are allowed a 35% credit (up to a max of $1400) off of your state taxes. See this link for details. The State Program can be combined with the Federal program.
Local Utilities: There are a number of big power companies in NC such as Duke Energy and Progress Energy, but also there are 26 member owned EMCs (Electric Membership Cooperatives) which operate in 93 of NC’s 100 counties.
Some power companies offer incentives toward green improvements which can sometimes be quite significant.
For example:
- South River EMC offers $1,000 toward the installation of a solar powered hot water heater
- Progress Energy offers up to $450 toward the installation of energy efficient windows
Check your power company’s website or give them a call to find out about their individual programs.
