If you made any home improvements during 2012 or plan to this year, great news! You may qualify for a tax credit of up to $500 – so look back at those receipts!
The qualifying costs that improve energy efficiency include adding insulation, energy efficient exterior windows and doors, water heaters and stoves, metal and asphalt roofs, and energy efficient heating and air conditioning units. The cost of hiring a contractor is NOT included. In order to receive this energy tax credit, most of these items would require an Energy Star certification.
So how much can you claim? Up to 10% of the costs, but not exceeding $500. If you’ve already claimed the energy tax credit on any tax return from 2006 and on, you cannot use it again for 2012 or 2013.
Certain energy tax credit restrictions apply, so make sure to visit the Energy Star website for further information. For tax questions and to confirm the deductibility, please confirm with your tax advisor or go to www.irs.com.