on Tuesday March 19th '13, 10:49 am
2012-2013 Energy Tax Credit
on Friday January 25th '13, 10:30 am
Federal tax credits for energy-efficiency home improvements are back. The law allows homeowners to claim tax credits of varying amounts on improvements such as insulation, energy-smart windows and highly efficient furnaces. Congress has made the credits retroactive, so improvements made in both 2012 and 2013 will qualify.
The program has a cap of $500 in total credits. The limit goes back to 2006, when the very first credits became available. If you've already claimed $500 in credits for energy-efficiency improvements you're not eligible for more.
You can receive credits for 10% of the cost of insulation materials and systems, not including installation. The improvements must be made to the taxpayer's principal residence and must be placed in service by the end of 2013.
To claim a tax credit, you need to file Form 5695 along with your federal income tax return for the year the improvement is made. The credit will be subtracted from the amount of tax you owe or added to your tax refund. Before you file, you are required to get a Manufacturer's Certification Statement - a signed statement from the manufacturer certifying the product qualifies for a tax credit. You should keep it in your files, but do not have to submit a copy of the statement with your return.