Federal Tax Credits For Energy Efficiency Upgrades
Celebrating Earth Day is somewhat like celebrating New Years. We “resolve’ to do various things on both occasions. Since another Earth Day has come and gone, we wanted to share some resolutions or ideas you might consider to help keep our planet green. And, if we follow through with our commitments to be green, there are other rewards. Money. And who doesn’t want more of that?
If you purchase an energy-efficient product or renewable energy system for your home, you may be eligible for a federal tax credit. Below is an overview of the federal tax credits for energy efficiency that are currently available.
Tax credits for these products are available at 30% of the cost, with no upper limit, through 2016: Geothermal Heat, Wind Energy, Fuel Cells, Solar Energy Systems are all available on principal or second home; new or existing.
If you are considering, or have installed any of these systems, visit irs.gov to obtain the correct forms for the tax year you are filing. The site also offers more tips.
Save your receipts, or make copies of them, and the Manufacturer Certification Statement for your records. The credits are nonrefundable—in other words, the credits are only available to the extent you have a tax liability. The credits for home energy improvement products eligible through 2011 may be limited if you are subject to the AMT. Tax credits can only be claimed once, and are limited to the year in which they are purchased: If you claimed a home energy improvement tax credit on your 2010 taxes, you cannot take an additional credit for the same purchase on your 2011 taxes. And, there is a $500 lifetime limit on the federal tax credits that expire in December 2011 (not those that expire in 2016). If you have received a total of $500 or more in these tax credits from 2006-2010, you are not eligible for any more.