Home Energy Tax Credits

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

Having an energy-efficient home will save money on your bills and pay less money in taxes. Learn how you claim home energy tax credits if you qualify.

Non-Business Energy Property Credit

You can get a 30% 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 reduces heat loss or gains
• Exterior windows, skylights, or doors
• Storm windows and doors
• Solar panels
• Metal and asphalt roofs that reduce heat loss or gain

Residential Energy Efficient Property Credit

This energy tax credit will allow you to have a 30% credit for the alternative energy equipment that you have 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.

How to Claim the Energy Tax Credit

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 claim all the energy tax credits that you are eligible for, we recommend filing your taxes online this year.