Two IRS tax credits for home energy improvements:
The Non-business Energy Property Credit: Homeowners who improve the energy efficiency of their homes, including adding insulation, energy-efficient exterior windows and doors and certain roofs, can receive a tax credit of up to $500. The credit is based on 10% of the item’s cost. Quality improvements must have been made before January 1, 2012.
Residential Energy Efficient Property Credit: This tax credit helps pay for residential alternative energy equipment suchas solar hot water heaters, solar eliectricity equipment and wind turbines. This credit runs through 2016 and is up to t 30% of the cost with no cap.
Be sure you have the manufacturer’s tax credit certification statement in order to ensure your improvements qualify. You can claim both of these credits on form 5695.
