The Weekly Ledger: Federal Energy Credits
Posted Jan 31
The IRS continues to offer energy credits for qualifying home improvements for your residence, such as for insulation, exterior windows and doors that meet the Energy Star requirements, and for metal roofs. The credit is 10% of the cost of the improvement, excluding labor, up to a $500 maximum credit (windows qualify for up to a $200 credit). Additionally, if you make qualifying solar electric, solar water, geothermal heat pump or small wind energy improvements, you may be eligible for a credit of up to 30% of the cost of the improvement, including labor. This credit is not capped and also can be used for your residence, or any other residential property that you own. Both credits are claimed on Form 5695, and both are eligible to carryover to a future tax year, if not fully used in the current tax year. So, while it’s important to ask your local energy provider about what credits apply to your home improvement costs, remember that these Federal tax credits can be requested when you file your 2012 (and 2013) tax return. Please contact us if you have any questions about these credits, or if you would like to schedule an appointment to have your 2012 income tax return prepared.