Tax Incentives for Energy Efficiency

Written by Walking Mountains Sustainability | Feb 25, 2021 5:37:00 PM

Don’t dread tax day! This is an opportunity to cash in on all the great energy efficient projects completed all year long. Many of the participants of our home energy assessments make energy efficiency improvements on their home and may qualify for Federal income tax credits and incentives. EnergyStar lists a number of renewable energy tax credits:

Geothermal heat pumps
Small wind turbines (residential)
Solar energy systems
Fuel cells

EnergyStar also lists equipment tax credits for primary residences:

Air source heat pumps
Central air conditioning (CAC)
Water heaters
Advanced main air circulating fan
Biomass stoves
Others

Here are links to downloadable IRS tax forms and instructions:

Title	IRS Form #	Links	Used For
Residential Energy Credits	5695	Fillable Form	Residential Renewable Energy and Efficiency Equipment Credit
		Instructions
Energy Efficient Home Credit	8908	Fillable Form	Contractors that sold or leased energy efficient homes
		Instructions
Electric Drive Motor Vehicle Credit	8936	Fillable Form	Credit for 4-wheel and 2-wheel electric vehicles
		Instructions

Colorado Department of Revenue (CDOR) also has an innovative motor vehicle credit that provides tax credit for the purchase of electric vehicles. The DCOR issued the informational document, Income 69, which provides general information about the electric and hybrid vehicle tax incentive.

Here are links to downloadable CDOR tax forms and instructions:

Title	IRS Form #	Links	Used For
Innovative Motor Vehicle Credit and Innovative Truck Credit	DR 0618	Fillable Form	Credit for electric and hybrid vehicles
Innovative Motor Vehicle Credit and Innovative Truck Credit	DR 0617	Instructions	Credit for electric and hybrid vehicles

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