Tuesday, March 31, 2015

Heather's Corner: Oro Valley Tax Credit Incentives: Make Sure You're Receiving Credit Where Credit is Due

It's tax time. No doubt many of you are looking for ways to receive federal or state tax credits. Hopefully you are already aware of the tax credits and incentives listed in the Oro Valley Town's website, but if not there are a couple that I found interesting.

Energy Star is a joint program of the U.S. Environmental Protection Agency and the U.S. Department of Energy. Having had installed proper energy efficient products not only helps the environment and saves money on your bill, but potentially offers tax credits as well. The Tax Increase Prevention Act of 2014 extended through December 31, 2014, tax credits for some energy efficiency measures that previously expired at the end of 2013. This must be for your existing home and principal residence. Rentals and new builds do not apply.

The tax credits 10% of cost up to $500 or a specific amount from $50-$300. You can refer to this link to see if you qualify. Examples include:
  • Windows, doors, skylights
  • Metal roofs with appropriate pigmented coatings" and "asphalt roofs with appropriate cooling granules"
  • Typical bulk insulation products can qualify, such as batts, rolls, blow-in fibers, rigid boards, expanding spray, and pour-in-place but also products that air seal like weatherstripping and caulk.
  • Advanced Main Air Circulating Fan
  • Central Air Conditioning with certification statement 
For the 2015/2016 year, existing homes and new construction qualify as well as both principal residences and second homes. These credits, under the Energy Star Program, are 30% or cost, with no upper limit and include:
  • geothermal heat pumps
  • small wind turbines (residential)
  • solar energy systems 
And 30% of the cost, up to $500 per .5 KW of power capacity tax credit for Fuel Cells (Residential Fuel Cell and Microturbine System).

I would like to note the Town's website currently lists Arizona Greywater Conservation System Tax Credit. This credit is for installing a water conservation system in a residence that relates to the recovery and disposal of greywater. However, this credit expired January 1, 2012.

Soon enough, this dreaded tax time will be behind us, if it isn't already for some. Until then, we are at least at the tail end of tax season in the abundantly enjoyable Oro Valley weather as opposed to some of those back east.

And check out the full list of Energy Star qualifying tax credits. As a Morgan Stanley advertisement once stated, "You must pay taxes. But there’s no law that says you gotta leave a tip."
Heather Nenadovich has lived in Oro Valley for 6 years. She has a B.A. in Psychology from the University of Arizona. She loves gardening, nature, art, and travel. Currently her two young children fill up most of her days (and nights) with chaotic bliss. Oro Valley favorites: memorial bench at the entrance of Romero Canyon Trail in Catalina State Park, Toscana Studio and Gallery, OV Fall Festival, the gumption and determination of OV residents!

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