Can I still make some energy efficient improvements on my home and take a tax write-off? Well yes and no. The $500 lifetime credit for personal energy property expired back in the end 2017. You can no longer take deductions on your federal return for those energy-efficient doors, windows or insulation on your home.
The good news is even though you cannot claim this deduction on your federal tax return; you can still claim it on your Idaho return. Idaho allows you to deduct those windows and insulation and even the amount charged for labor to install the energy efficiency upgrades.
There is still one big energy tax credit you can claim on your federal tax return. If you invest in solar panels or solar energy you can receive up to 30% of the cost as a credit. Even if you don’t have much of a tax liability you can roll over the remaining credits into future years for as long as the tax credit is in effect. In addition to the federal credit, you also receive a deduction on Idaho for solar panels as well. Idaho allows you to deduct those costs up to four years potentially allowing for up to $1,400 in Idaho tax savings over four years.
With the expiration of the personal energy property credit you don’t get as much of a deduction for insulation and energy efficient windows. Solar energy is where you can get the most bang for your buck in tax credits right now.