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Claiming Energy Tax Credits

By Morgan Saylor

Claiming tax credits for making your home more energy-efficient makes for a pretty cool break. For this year’s taxes, Donna Fuscaldo via houselogic writes, if you’ve upgraded to some of these systems, you could be eligible for a tax credit on your return:

  • Biomass stoves
  • Heating, ventilation, air conditioning
  • Insulation
  • Roofs (metal and asphalt)
  • Water heaters (non-solar)
  • Windows, doors, and skylights
  • Advanced main air-circulating fans

Fuscaldo writes there are limits on IRS energy tax credits besides the $500 max.

The credit extends to 10% of the cost, so you have to spend $5,000 to get $500.

Also, $500 is a lifetime limit. If you pocketed $500 or more in past years combined, you’re not entitled to any more money for energy-efficient improvements in those categories.

With some systems, the cap is lower than $500, but $500 is the max for all qualified improvements combined.

How do you claim the energy tax credit?
Fuscaldo writes to determine if your system is eligible for the credit, check to see if it’s covered via Energy Star’s website here and file IRS Form 5695.

For more on claiming energy tax credits, check out houselogic.

Source: https://www.houselogic.com/finances-taxes/taxes/how-to-collect-tax-energy-credits/

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