A whole house generator is a major home improvement that will help keep your property running during power outages. They’re also a great way to add value to your home!
However, installing a whole house generator isn’t always tax-deductible. It depends on your location and state.
Whether you’re purchasing a whole house generator to power up your home during an emergency or as part of a home renovation project, there are several tax deductions that can be taken advantage of. For example, portable generators used to power oxygen tanks or insulin pumps qualify as deductible medical expenses.
However, there are some tax rules that you need to understand before claiming this deduction. First, the generator must be purchased before December 31st of the year in question.
Second, you must use it for business purposes at least half the time. This is important because if you are not using your generator for business purposes, you can’t claim this as a deduction.
Also, you should consider whether the installation of your whole house generator will increase the value of your property. This will affect how much you owe in capital gains taxes when you sell your home.
If you’re looking for a way to save money on your power bills, it might be time to look into energy credits. There are many ways to reduce your utility costs, from upgrading your appliances to installing an energy efficient home system.
One of the best ways to save money on your electricity is to buy renewable energy credits (RECs). These are certificates that prove you’re purchasing renewable power and lowering your carbon footprint.
RECs are sold through voluntary markets, where customers can choose to purchase renewable power because of their concern for the environment. These credits can be a big help in complying with state laws that require utilities to use renewable resources in certain amounts.
There are also tax credits and rebates that make it easier for consumers to install renewable energy systems. These include the Solar Investment Tax Credit, which rewards homeowners for putting in solar panels. In addition, there are credits for home energy storage systems, which are like giant batteries.
Peace of Mind
As we mentioned earlier, a whole house generator gives you the peace of mind that your home and your family won’t be left unprotected when the power goes out. It can keep your appliances running, your security system functioning, and your climate control system at the ready so you won’t have to worry about any loss of comfort or safety.
You can even set the unit to automatically turn on when the power goes out and start working after just a few minutes. This is a great feature for homeowners who have sensitive medical equipment in their homes.
Another benefit of having a standby generator is that it will help deter intruders who may attempt to break into your home during a power outage. It can also protect elderly loved ones who depend on oxygen tanks or CPAP machines to get around. Buying and installing one will give you peace of mind, as well as added resale value when you decide to sell your home.
Increased Home Value
If you’re looking for a home improvement that will increase your property value, consider purchasing a whole house generator. According to consumer reports, a properly installed whole house generator can add up to 5% in resale value.
If your property is located in a hurricane-prone region or in an area that frequently experiences power outages, the presence of a standby generator can be a major selling point for potential buyers.
A backup generator also saves you money by reducing the damage caused by power outages, from frozen pipes to a damaged well pump.
Many insurance companies reward homeowners for installing a backup generator with a discount of around 5% on the property portion of their homeowner’s policy. Depending on where you live, discounts may reach 10%.