Snag these energy efficiency tax credits before the year is up!

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Campbell Weyland

Staff Writer

Nov 12, 2020

Did you know purchases like a new water heating system or windows can reduce the upcoming taxes you owe? The US government has extended tax credits for residential energy efficiency purchases until December 31, 2020. And Lowe’s carries many of these energy-efficient products that can help you qualify for those tax credits. 

Energy-efficient products are not only good for the environment but will also save you money on your energy bill. Lowe’s makes it easy to shop these tax credit eligible items through Lowes.com at Lowe’s Online Rebate Center where you have the ability to filter by type of rebate. Some of the categories that allow you to receive these credits:

Hot Water Heater:

Switching out your water heater with an energy-efficient product can have a significant impact on your monthly energy bill. Typically, 20 percent of your energy bill is tied to the heating of water in your home. By switching to an ENERGY STAR certified water heater, you can reduce your annual energy cost by as much as $300. Add in the $300 tax credit for this year and this A.O. Smith water heater has saved you almost half of the purchase price.

Insulation:

Insulating your house will not only make you more comfortable, but it will also save a significant amount of heat and cool air from escaping your home. Attics and basements are some of the more-likely areas where your home’s heated or cooled air escapes. By insulating with an ENERGY STAR certified roll, the EPA states you can see a 10-15 percent decrease in your heating bill during the winter and cooling bill during the summer. The federal government is also incentivizing homeowners to insulate their homes with ENERGY STAR certified material by offering a tax credit amount of 10 percent of the cost of the purchase, up to $500 (not including installation). If you want to keep the cold air in your home during the summer, look no further than these Johns Manville insulation rolls.

Windows, Doors, and Skylights:

It’s not only important to insulate your attic and basement, but it is equally important to insulate your doors and windows. Products that are ENERGY STAR certified are designed to keep your inside air from escaping outside of your house. By switching to ENERGY STAR certified window and doors, you could expect to see a 12 percent reduction on your energy bill (based on the national average). The 10 percent tax credit applies to any ENERGY STAR certified window or door that is purchased. 

The next time you are looking for products to reduce your energy bill, look no further than Lowe’s for affordable options to help keep your home energy efficient. For more information on additional product categories not covered in this article, check out the EPA’s website to see if your purchase could be eligible for one of these credits.