Did you install Energy Efficient upgrades to your home this year? You may be eligible for a tax credit.
Some home improvement tax credits for energy savings have expired and some are still in effect which you can claim today. Are your energy home improvements eligible for the tax credit savings?
There are currently two available Tax Credits for adding Energy Efficient upgrades to your permanent residence. Upgrades to Rental, Vacations, or other properties are not eligible.
You can claim your IRS energy tax credits by using online tax software. You will not miss out on valuable tax credits for energy home improvements. Many taxpayers do not know how to claim their tax credits for energy efficient products they have installed in their homes. The tax software will take your information and put it into the correct tax form boxes for you.
Home Energy Tax Credits
(NOTE: the following items must have been installed and in operation by December 31, 2011. Tax credits for Doors, Windows, Skylights, and Roofs have expired. This information is for amended and late tax returns)
The first Tax Credit the IRS is offering is the Non Business Energy Property Credit, which covers 10% of the cost of energy efficient upgrades like: Doors, Windows, Skylights, Insulation, and some type of Roofs.
This does not include Installation cost; however you may include installation cost for some energy efficient upgrades to Heating, Air Conditioning, Water Heaters, and Stoves that burn Biomass for fuel. This credit has a lifetime limit of $500 and only $200 of which may be used for Windows and Skylights.
Residential Solar Energy – Fuel Cell – Wind Turbine Tax Credits
(The energy tax credits listed below are eligible for tax credits until 2016)
The second Tax Credit the IRS is offering is the Residential Energy Efficient Property Credit. This tax credit applies to Solar Water Heaters, Solar Energy Systems, Fuel Cell, and Wind Turbines.
This Credit covers 30% of the total cost including labor. You can also carry over any unused portion of this credit all the up until 2016 or until is used up.
Make sure you check the packaging or the manufacturers’ website to be certain your upgrade is eligible for the tax credit because not all Energy Efficient upgrades are eligible. The Energy Star icon does not automatically qualify an item for the tax credit.
Tax software scans your tax return to make sure you claim every energy tax deduction and all other tax breaks you deserve.