Tax credits for energy-efficient home upgrades, as well as wind power and other renewable energy sources, are scheduled to expire at year-end. Whether they will be renewed for 2014, remains to be seen.
So the next few months might be a good time for you and your customers to take care of those insulation problems that are adding to the energy bill.
A credit with a lifetime limit of $500 for residential property is still available. The credit is available only for the primary residence.
The tax credit is for 10 percent of the cost of the product only and does not include installation. Improvements eligible for the tax credit include:
- Insulation materials designed to make the home more energy-efficient
- Exterior windows and skylights ($200 maximum on windows)
- Exterior doors
- Metal roof with cooling granules
Heating and air conditioning equipment qualify up to the following caps:
- Certain electric heat pumps ($300)
- Certain heat pump water heaters ($300)
- CEE-approved central air conditioners ($300)
- Natural gas, propane or oil water heater ($300)
- Natural gas, propane/oil furnaces or hot water boiler ($150)
- Advanced main air circulating fan ($50)
To claim the credit, use IRS Form 5695. Keep a copy of your receipt and the manufacturer’s certification statement.
Also scheduled to expire are several credits for the production of wind power and other renewable energy sources. Expiring credits include a 2.3-cent-per-kilowatt tax credit for wind, a $1.01 per gallon credit for cellulosic ethanol, and $1 per gallon credit for biodiesel producers.