Tuesday, November 26, 2013
The feds have resurrected, through 2013, $500 tax credits for energy-efficient home improvements. If you upgraded one or more of the following systems, you may be eligible to take a tax credit on your return.
Tax Credits for Non-Solar Water Heaters
The government offers an energy tax credit for adding a more efficient hot water heater to your home.
Tax credit limits and deadlines:
- You must have installed the water heater by Dec. 31, 2013.
- 10% of expenditures, up to $300, for a non-solar water heater, including installation. (You can spend a lifetime total of 10% of expenditures up to $500 for all approved energy purchases combined. If you already claimed energy tax credits up to this limit, you’re done.)
- Save receipts and labels for Uncle Sam.
Tax Credits for Replacing Cooling and Heating Systems
The Energy Star site has posted new guidelines on what heating and cooling systems are covered. It’s your safest bet for information on which kinds of systems and individual products get you the credit.
The basics:
- Lifetime credit max of 10% of costs, up to $500 for all energy improvements combined.
- If you got $500 or more back during 2009-2010, you’re done.
- File IRS Form 5695 with your returns. This can be tricky, so pay attention to the details.
Installation costs are generally covered.
Limits and deadlines:
- You must have installed a relevant heating and cooling system by Dec. 31, 2013.
- You can’t claim more than a $500 credit for the year.
- Save manufacture certifications and receipts in case you need them for
Tax Credits for Insulation
If you add insulation before the end of the year, you’ll be eligible to collect a $500 energy tax credit.
Tax credit limits and deadlines:
- 10% of expenditures, up to $500 for the year, for all energy improvements combined. It’s a lifetime credit.
- Insulation must have been installed by Dec. 31, 2013.
- Save receipts and labels for Uncle Sam.
- Be sure to file IRS Form 5695 with your return.
The Energy Star site is your safest bet for information on how to get the credit. Energy Star has been pretty flexible on what it allows for this credit:
- Batts, Rolls, Blow-in fibers, Rigid boards, Expanding spray, Pour-in-place.
- Products that reduce air leaks also qualify.