Can I Claim My Energy-Efficient Appliances for Tax Credit?
If you’re wondering how to claim tax credit for energy efficient appliances, there’s a chance you can qualify. But the fact is, there used to be far more options for appliance-related federal tax breaks than there are now. Don’t lose hope until you’ve read through your options below and spoken with a tax professional.
Appliances and Systems That Qualify for Tax Breaks
While you can’t claim your standard energy-efficient appliances (like a dishwasher or a dryer), you can most likely get a federal tax credit for any renewable energy systems that run those appliances. Solar panels, wind power systems, and geothermal heat pumps may get you a tax break for up to 30 percent of the cost. For residential systems, the tax credit is called the Non business Energy Property Credit and can be claimed for your main home and a second home—at least for the 2019 tax year.
Other energy-efficient appliances you can possibly claim include new wood stoves, solar-powered water heaters, and certain fuel cells (e.g., hydrogen).
How to Claim Tax Credit for Energy-Efficient Appliances
If an accountant or other tax preparer files your taxes each year, they will be your up-to-date resource for how to claim tax credits for energy-efficient appliances or submit a deduction. The rules have changed before, and they might change again in the future. Just keep track of your energy-related and appliance-related costs and educate yourself each year so you don’t miss your chance of getting a tax break!
Other Incentives for Energy-Efficient Appliances
Some state or local governments offer incentives or special programs for energy-efficient appliances. These incentives are unrelated to taxes. The US Department of Energy funds and maintains a large database called DSIRE® where you can search for policies and incentives at the city, state, federal, and utility level. Search by zip code to find out how to claim incentives for your energy-efficient appliances in any of these categories.
A less tangible incentive for using energy-efficient appliances is the knowledge that you’re doing your part to reduce your carbon footprint. Want to do even more?
- Check out Energy-Saving Tips from our Mr. Appliance® pros.
Finally, be sure to have your appliances routinely maintained so they perform at peak efficiency. Your local Mr. Appliance is ready to provide outstanding service.