Before you press send on your online tax return or finish your last meeting with your financial advisor, make sure you are saving as much money as possible for making energy-efficient choices at home.
Energy efficiency is always a good idea for your bottom line and this year you can take advantage of some related tax credits!
Here are three questions the Alliance to Save Energy has answered about energy efficiency home tax credits in 2013:
Who is Eligible?
You can receive tax credits by installing specific energy-efficient home improvements between Jan. 1, 2011 and Dec. 31, 2013 in your primary residence (that you own).
What Energy-Efficient Home Improvements are Eligible?
You are eligible if you have purchased and installed certain energy-efficient products, including:
- Exterior windows,
- Insulation for exterior doors or roofs, and
- Central air conditioner, heat pump, furnace, boiler, water heater or biomass stove.
Just be sure to check and make sure your energy-efficient improvement meets the minimum standards so you qualify for the credit.
How Much is the Credit?
The tax credit, which is capped at $500, accounts for 10% of the cost of building envelope improvements (excluding labor costs). There is also a limit of $200 for windows, and specific dollar limits for heating and cooling equipment.
You should also know there is a cap on the credit amount for fiscal years 2006-2013 combined; if you have claimed this credit in the past, it counts against the $500 limit (but does not affect the $1500 limit available for 2009 and 2010). So, for example, if you claimed $300 in 2007, you can only claim $200 in 2011; if you claimed $800 in 2009, you cannot claim any more credit.
Learn More about Energy Efficiency Tax Credits
The Alliance’s Energy Efficiency Home and Vehicle Tax Credits resource provides more information about credit values and requirements for specific purchases, and what you need to do to receive the credits.