Tax Credits and Grants for Energy Improvements

 

In addition to lowering your energy bill and helping the environment, there is another reason to make energy-saving improvements to your home - tax credits and grants from the Federal Government and the State of Maryland.  Here is a quick rundown on some of the money currently available:

 

Federal

 

Nonbusiness Energy Property Credit

 

This credit equals 30 percent of what a homeowner spends on eligible energy-saving improvements, up to a maximum tax credit of $1,500. The cost of certain high-efficiency heating and air conditioning systems, water heaters and stoves that burn biomass all qualify, along with labor costs for installing these items. In addition, the cost of energy-efficient windows and skylights, energy-efficient doors, qualifying insulation and certain roofs also qualify for the credit..

 

Residential Energy Efficient Property Credit

 

The residential energy efficient property credit also equals 30 percent of what a homeowner spends on qualifying improvements such as solar electric systems, solar hot water heaters, geothermal heat pumps, wind turbines, and fuel cell property. Generally, labor costs are included when calculating this credit.

 

Maryland

 

Solar Energy Grant Program

 

The Solar Energy Grant Program provides funding for up to $3,000 for a solar water heating system, and up to $10,000 for solar energy systems.

 

Geothermal Heat Pump Grant Program

 

The Geothermal Heat Pump Grant Program provides up to $3,000 for the installation of residential geothermal heat pumps.