Business & Finance Taxes

How to Get Energy Tax Credit for Home Improvements

    • 1). LEARN WHICH PRODUCTS QUALIFY FOR HOME ENERGY EFFICIENCY IMPROVEMENT TAX CREDITS
      Generally speaking, the tax credits available for upgrading the energy efficiency of your home are limited to high efficiency windows, doors, insulation, roofing, water heaters, and heating and cooling systems. The amount of the tax credit is 30% of the purchase price (including installation costs for water heaters, heating, and air conditioning systems), with a maximum of $1500. To review product eligibility requirements, use the link in the Resource section tor go to energystar.gov/taxcredits.

    • 2). PURCHASE AND INSTALL AN ELIGIBLE PRODUCT
      To qualify for the tax credit, the upgrades must be installed and in use no later than December 31, 2010. Because in general there are no published lists of qualifying products, you will likely need to shop around. All qualified products will have a signed "Manufacturer Certification Statement" that certifies that the product qualifies for the tax credit. If you're planning to get the Home Energy Efficiency Improvement Tax Credit, make sure that you obtain a copy of this certificate.

    • 3). FILE TAX FORMS AND CLAIM YOUR CREDIT
      To claim your energy tax credit, you'll need to fill out Form 5695 and send it in with your 2009 tax return. The 2009 version of this form is not yet available, but should be on irs.gov by the end of the calendar year. You do not need to submit the Manufacturer Certification Statement or the receipt for your purchase, but save both of these documents for your records. Note that ff the federal taxes you owe are less than the tax credit, you're credit will be reduced accordingly.

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