Ohio Homeowner’s Guide to Energy Efficient Tax Credits and Rebates
By NOPEC on June 6, 2019
For homeowners in Northeast Ohio, it pays to be energy efficient. Although energy-saving home improvements can be quite the investment, it pays for themselves over time in savings. To help promote energy efficiency, the federal and state governments and many utility companies offer rebates, tax credits, and other incentives to residents. Use this guide to cut costs on energy efficient home appliances, products, and systems.
Federal Energy Efficient Tax Credits
There are several federal energy efficient tax credits available for homeowners who purchase certain ENERGY STAR certified products. These tax credits are good for geothermal heat pumps, small wind turbines, fuel cells, and solar energy systems like water heaters and panels. The credit value for these products depends on when these renewable energy systems are installed:
- 30 percent of the cost for systems placed in service by 12/31/2019.
- 26 percent of the cost for systems placed in service after 12/31/2019 and before 01/01/2021.
- 22 percent of the cost for systems placed in service after 12/31/2020 and before 01/01/2022.
These products not only qualify you for a tax credit but also lower your energy consumption and energy bills, further saving you money. In order to claim your tax credit, you need to file IRS Form 5695 with your taxes. Be sure to keep a copy of the Manufacturer’s Certification Statement and any receipts or itemized bills.
State Energy Efficient Tax Credits
For greater savings, Ohio residents can combine federal tax credits with state tax exemptions and rebates for renewable energy systems. These financial benefits include:
- Solar Power Performance Payments: This production incentive provides small cash payments based on the number of kilowatt-hours (kWh) or BTUs generated by a renewable energy system.
- Property Tax Exemptions: In Cleveland and Cincinnati, installed residential solar systems can be excluded from the value of their property for taxation purposes.
- Sales Tax Exemptions: Homeowners receive a 5.75 percent savings on their solar panel system.
Utility Energy Efficiency Rebates
Rebate programs for energy-efficient home appliances are often offered at electric and gas utility companies, including The Illuminating Company, Ohio Edison, American Electric Power, Columbia Gas of Ohio, and Dominion East Ohio. Some even offer incentive programs where you are reimbursed for recycling your outdated appliances.
Ohio Edison Rebate Program
Ohio Edison and The Illuminating Company offer rebates for ENERGY STAR certified products, including LED lighting and appliances like clothes washers, dryers, and refrigerators. Rebates are also offered for solar water heater purchases and HVAC maintenance. As an incentive, Ohio Edison will also pick up and recycle your old refrigerator or freezer for $50.
American Electric Power
American Electric Power offers rebates and incentives for homeowners to be more energy efficient. For one, they’ll pay you a cool $50 for your old refrigerator or freezer. AEP also offers rebates on ENERGY STAR LED lighting and appliances, including clothes washers, dehumidifiers, VSD pool pumps, and heat pumps.
Columbia Gas of Ohio Rebate Program
Columbia Gas of Ohio offers rebates on energy efficient home products and ENERGY STAR appliances. Customers can receive between $75 to $10 off the original purchase price of programmable thermostats, efficient showerheads, and faucet aerators. In addition, customers can get as much as $350 off ENERGY STAR furnaces, boilers, and water heaters.
Dominion East Ohio Rebate Program
For home insulation, natural gas furnaces, windows, and exterior doors, Dominion East Ohio offers rebates up to $1,250.
Want more ways to lower your energy costs? Sign up for our newsletter to receive energy-saving tips and changes to win smart home technology. In the meantime, check out the NOPEC tip house to see where you can save energy in your home.Tags: NOPEC, Energy Efficiency, Ohio
Categories: Energy Efficiency