Starting this year, nearly any homeowner can claim a raft of federal tax credits for home energy improvements.
Whether you’re replacing your furnace, air conditioner or water heater, save your receipts. At tax time, you can lower your federal income tax bill. Here’s a sampling of the best breaks, according to the IRS:
- Building envelope components satisfying federal energy efficiency requirements under the Energy Efficiency Requirements section:
- Exterior doors (30% of costs up to $250 per door, up to a total of $500);
- Exterior windows and skylights (30% of costs up to $600); and
- Insulation materials or systems and air sealing materials or systems (30% of costs).
- Home energy audits (30% of costs up to $150, see Q5 under the General Questions section.
- Residential energy property (30% of costs, including labor, up to $600 for each item) satisfying the energy efficiency requirements in Q1 under the Energy Efficiency Requirements section:
- Central air conditioners;
- Natural gas, propane, or oil water heaters;
- Natural gas, propane, or oil furnaces and hot water boilers; and
- Improvements to or replacements of panelboards, sub-panelboards, branch circuits, or feeders that are installed along with building envelope components or other energy property listed in these FAQs and enable its installation and use.
- Heat pumps and biomass stoves and biomass boilers (30% of costs, including labor) satisfying the energy efficiency requirements in Q1 under the Energy Efficiency Requirements section:
- Electric or natural gas heat pump water heaters;
- Electric or natural gas heat pumps; and
- Biomass stoves and biomass boilers.
Tally up the expenses of any qualifying energy improvement you make. The savings will really add up.
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