Energy efficiency tax credits expired at end of 2016
Several energy efficiency tax credits for U.S. consumers and businesses expired on Dec. 31, 2016 after Congress did not renew them.
One expired incentive offered tax credits for efficiency upgrades and energy efficiency equipment purchases like weatherizing or installing new windows. Another encouraged more energy efficient home construction. Others offered incentives for upgrading the efficiency of commercial buildings.
In order to take advantage of the tax credits, relevant products must have been in service by Dec. 31, 2016.
Congress could reinstate the tax credits or introduce new incentives in 2017.
“Whether it’s through tax reform or an extension of the existing incentives, Congress needs to act quickly in the coming year to ensure that our tax code continues to appropriately reward energy efficiency again. Because as of Jan. 1 it won’t be,” Kateri Callahan, president of the Alliance to Save Energy, said.
Energy efficiency supports some 1.9 million jobs in the United States in areas like construction, manufacturing, installation and development, according to a study by E2 and E4TheFuture.
“These incentives have broad bipartisan support and deliver a tremendous return on investment,” Callahan said. “In addition to creating jobs and economic activity, they’re improving energy security by reducing demand on overloaded electricity grids. And they’re significantly cutting pollution and related public health problems.”
