Tax Incentives Extended for 2012 and 2013!

7 01 2013

When the “fiscal cliff bill” passed on January 1, 2013 it extended the energy tax credits.  The extension is retroactive for 2012.  Meaning all qualifying home improvements done in 2012 will qualify for a tax credit now.  The extension is set to last through 2013.

An eligible taxpayer (homeowner) may claim a tax credit for 10% of installed costs of a variety of qualified energy efficient improvements to their home including: HVAC, insulation, roof, windows and doors, or hot water equipment.  While the amount a homeowner may claim for all qualified improvements is capped at $500, the amount for each improvement is subject to individual caps.  For HVAC, the individual tax cap for heat pump or air conditioner is $300, for a furnace the cap is $150, and for an advanced circulating fan the cap is $50.  There are minimum efficiency requirements that must be met in order to qualify.  You can give us a call to find out if your system qualifies or if you are interested in taking advantage of this tax credit by replacing your old heating and cooling system.

There is a lifetime residential energy tax credit limit of $500, going back to January 1, 2005.  Meaning that if you have already taken a energy tax credit for $400 then you only have $100 left to take.  The IRS will soon release information instructing taxpayers on how to file a claim.  Assuming the requirements are similar to the past, you will need to file a Form 5695 when you submit your taxes.  Your tax preparer should be able to provide more information.

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