As part of the fiscal cliff legislation that just passed, Congress voted to extend the tax credit for energy efficient home improvements. This tax credit covers 10 percent of the energy efficient home improvements up to $500 in a lifetime.
Homeowners can install energy efficient improvements such as insulation, new windows and doors, and furnaces. All improvements must be installed on your existing principle home in the U.S. that you live in. The credit still provides tax savings for equipment such as:
- Biomass stoves
- Heating, ventilating, air conditioning (HVAC)
- Roofs (metal & asphalt)
- Water Heaters (non-solar)
- Windows, skylights & doors
Please note that this is a lifetime credit, so if you’ve taken the credit in previous years, you’ll need to review how much was deducted. The total credit cannot exceed $500.
For more information about this tax credit, visit http://www.dsireusa.org/incentives/incentive.cfm?Incentive_Code=US43F&re=1&ee=1.