If you’re thinking about making improvements to your home or replacing old appliances anytime soon this article is for you.

Our tax code now has two types of energy tax credits that might help save you some money. The first credit is the Residential Energy Efficient Property (REEP) Tax Credit in the amount of 30% of the cost of qualifying solar water heaters, solar electric property, fuel cell property, small wind energy property, and geothermal heat pump property. This credit is available through December 31, 2016, and is a nonrefundable personal credit, which means you must have a tax liability to get the credit (though there are some carryover provisions). There are some limitations on the amount of the credit available on some of these items, and some of these credits are available on second homes, but not rental units.

The second credit is the Non-Business Energy Property Credit, also in the amount of 30% of certain expenditures made before the end of 2010. Qualifying purchases include certain types of heating, ventilation and air conditioning (HVAC) systems, water heating equipment, and improvements to the energy efficiency of the building envelope (windows, doors, insulation, etc). There is a lifetime maximum credit of $1500 per person or married couple. This credit is also a non refundable credit, but has no carryover provision (which means you can’t take the credit against a future tax liability). It is limited to improvements to a residence that is owned and occupied by the taxpayer as his or her principal residence. Second homes and rental units don’t qualify.

How do you know if an item qualifies? Ask the manufacturer for a certification statement and be sure to keep it and all receipts for your records. These documents do not need to be filed with the tax return. Also, be careful! Not all Energy Star products qualify for the tax credit.

In addition, some states are implementing a rebate program for purchasers of energy-efficient appliances. The State of Florida, for example will begin a 20% mail-in rebate program, starting in April of this year, and lasting two weeks. Eligible products include refrigerators, freezers, gas tankless water heaters, room air conditioners, washing machines, and dishwashers. Products must have the Energy Star rating, and there are no retroactive rebates.  There may also be an additional credit for providing proof of having recycled the old appliance. Stay tuned to http://www.myfloridaclimate.com/climate_quick_links/florida_energy_climate_commission/upcoming_funding_opportunities for more details about the rebate, and http://www.energystar.gov/index.cfm?fuseaction=find_a_product. To find out which products have the Energy Star rating.

As always, this article is intended to be a brief synopsis of some very complex rules. Please seek the advice of a CPA or attorney regarding your specific situation.