If you made your home more energy efficient in 2016, you may qualify for a tax credit this year! We received this great article from the IRS and we wanted to share some main points that stood out. For this, and many more publications, visit the IRS.gov website.
Non-Business Energy Property Credit
- This credit counts for 10% of the cost of qualified energy saving items. These items include adding insulation, energy-efficient exterior windows and doors, and certain roofs. It does not include the cost to install these items.
- The credit amount for each type of property has a different dollar limit rather than a percentage. For example, any installation costs of high efficiency heating and air-conditioning, water heaters, or stoves that burn biomass fuel.
- This credit has a maximum lifetime limit of $500, only $200 of this limit may be used for windows.
- The main home must be in the U.S and the non-business energy property credit is only available for existing homes.
- Always have a written certification from the manufacturer that this product does qualify for the tax credit. This will usually be posted on the website. Always keep the original copy with your tax records and not attached to your tax return.
- You may claim the credit on your 2016 tax return if you did not reach the lifetime limit in the past years.
Residential Energy Efficient Property Credit:
- This credit is 30% of the cost alternative energy installed in or on a home, including cost of installation.
- Qualified materials include: solar hot water heaters, solar electric equipment, wind turbines, and fuel cell property.
- If the credit is more than the tax owed, carry forward the unused portion of this credit to next year’s tax return. There is no dollar limit on the credit for most types of property.
- The home does not have to be your main home unless the alternative energy equipment is qualified fuel cell property. The residential energy efficient property credit is for both existing home and homes under construction. It is available through 2016.
For Residential Energy Credits, use Form 5695.
Business Resource Partners offers more than just bookkeeping services. We provide tax preparation and filing for both personal and business tax returns. We have a specialized team who is here to help!
We have extended our business hours this tax season and we are ready to work around your busy schedule!
Call us at (321) 236-2771 or visit 310 Almond Street Clermont, FL 34711.