Advanced technology in renewable energy takes home improvement to another level. These systems often don't pay for themselves quickly. To create incentives for interested homeowners, the federal government is sweetening the deal. The tax credit will cover 30 percent of the cost, including installation, with no upper limit. In most cases, the window for the tax credit has been extended to 2016. Eligible systems include solar water heaters, solar panels, geothermal heat pumps, and wind energy systems.
Always consultant your accountant or tax professional to itemize.