You can reduce your taxes and save on your energy bills with certain home improvements. Here are some key facts you should know about tax credits for home energy. Remember that, the Energy Property Credit is not for Business
Overview of Residential Energy Credits
• Part of this credit is worth 10 percent of the cost of certain qualifying energy saving items you added to your main home last year. This may include items such as insulation, windows, doors and ceilings.
• The other part of the credit is not a percentage of the cost. This part of the credit goes to the actual cost of a property. This may include items such as water heaters and heating systems and air conditioning. The amount of credit for each property type has a different limit money.
• This loan has a maximum lifetime limit of $ 500. You can only use $ 200 of this limit for windows.
What do you need to do to claim an energy tax credit?
• Your main home must be located in the United States to qualify for any type of resident energy tax credit.
• Make sure you have the manufacturer’s written certification that the product meets the requirements for this energy tax credit. Generally, the publish on its website or included with the product packaging. You can rely on it to claim the credit, but do not attach to your return. Keep it with your tax records.
• This credit expired at the end of 2013. The Act Tax Increase Prevention extended it to be applied for one year, until December 31, 2014. You can still claim the credit on their 2014 tax return if has not reached the limit in previous years.
Credit Residential Energy Efficient Property
• This tax credit is 30 percent of the cost of alternative energy equipment installed in your home.
• The qualified team includes solar hot water heaters, solar electric equipment, wind turbines and fuel cell property.
• There is no dollar limit on credit for most property types. If your credit is more than the tax you owe, you can carry forward the unused portion of the credit to the tax return next year.
• The home must be in the US There must be your principal residence unless the team is alternative energy fuel cell property qualify.
• This credit is available until 2016.
Use Form 5695 , Residential Energy Credits, to claim these credits. For more on this, see the instructions on the form.