American Tax Service

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Home Energy Tax Credits

Tax season is going to be here before you know it. Therefore, now is the time to make sure that you have made all of the energy efficient upgrades to your home.

By having an energy efficient home, you will save money on your bills and you can pay less money to Uncle Sam. Below are the tax home energy tax credits that you want to make sure you claim when filing your federal taxes.

Non-Business Energy Property Credit

home energy tax creditsYou can get a 10% credit for your energy efficient improvements. Things that fall under this category include:

  • Water heaters
  • Electric heat pumps
  • Central air conditioners
  • Natural gas, propane, or oil water heaters
  • Qualified oil furnaces
  • Qualified oil hot water boilers
  • Some air circulating fans
  • Insulation that reduced heat loss or gain
  • Exterior windows, skylights or doors
  • Storm windows and doors
  • Metal and asphalt roofs that reduce heat loss or gain

Residential Energy Efficient Property Credit

This property credit will allow you to have a 30% credit for the alternative energy equipment that you have had installed. Some of the things included are as follows:

  • Solar electric property
  • Solar water heating property
  • Fuel cell property
  • Small wind energy property
  • Geothermal heat pump property

Most of the items here do not have a limit. However, the fuel cell property credit is limited to $500 for each one-half kilowatt of capacity of the property.

What are Energy Tax Credits? TurboTax Video


Make sure that you take advantage of these two credits if you are eligible. Your home does not have to be your main residence; it only has to be in the US. To apply for the Residential Energy Property Credit complete Form 5695 and attach it to your Form 1040.

To ensure that you are getting all of the credits that you are eligible for, file your taxes with TurboTax this year.


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