Every year, many taxpayers lose out on valuable money simply because they don’t know their energy-efficient home improvements qualify for tax credits. Luckily for homeowners, the fiscal cliff law did extend the tax credits for energy-efficient home improvements in 2013. Plus, if you made any home improvements between 2006 and 2012 and you never claimed these as tax credits, you may still be eligible to receive a one-time tax credit of up to $500.
The tax credits apply to energy-efficient products, including (but not limited to): extra insulation, metal/asphalt roofing, wind turbines, ventilation, efficient air conditioning, bio mass stoves, and energy saving doors and windows.
While the majority of energy-efficient home improvements allow for up to $500 in tax credits, certain alternative energy improvements qualify for larger tax credits. These alternative energy improvements include: geothermal heat pumps, solar water heaters, solar panels, and small wind-energy systems. You can take a credit worth 30 percent of the cost of buying and installing this equipment for improvements made by December 31, 2016.
Each of the energy-efficient products you install must meet specific requirements to qualify. So, keep your receipts and manufacturer’s certification of eligibility. If you’re planning any home improvement projects in 2013, don’t forget about these credits when you file your taxes next year. You deserve to get a break, so claim your energy-efficient home improvements this tax season.