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 pay less money in taxes. Learn how you claim home energy tax credits if you qualify.
Table of Contents
Non-Business Energy Property Credit
- 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 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 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.
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 with H&R Block online this year.