Non-Business Energy Property Credit
- Part of this credit is worth 10 percent of the cost of
certain qualified energy-saving items you added to your main home last
year. This may include items such as insulation, windows, doors and roofs.
- The other part of the credit is not a percentage of the
cost. It is for the actual cost of certain property. This may include
items like water heaters and heating and air conditioning systems. The
credit amount for each type of property has a different dollar limit.
- This credit has a maximum lifetime limit of $500. You
may only use $200 of this limit for windows.
- Your main home must be located in the U.S. to qualify
for the credit.
- Be sure you have the written certification from the
manufacturer that their product qualifies for this tax credit. They
usually post it on their website or include it with the product’s
packaging. You can rely on it to claim the credit, but do not attach it to
your return. Keep it with your tax records.
- You may claim the credit on your 2015 tax return if you
didn’t reach the lifetime limit in past years. Under current law, this
credit is available through Dec. 31, 2016.
- This tax credit is 30 percent of the cost of
alternative energy equipment installed on or in your home.
- Qualified equipment includes solar hot water heaters,
solar electric equipment, wind turbines and fuel cell property.
- There is no dollar limit on the credit for most types
of property. If your credit is more than the tax you owe, you can carry
forward the unused portion of this credit to next year’s tax return.
- The home must be in the U.S. It does not have to be
your main home, unless the alternative energy equipment is qualified fuel
cell property.
- This credit is available through 2016.
Use Form
5695, Residential Energy Credits, to claim these credits.
Each and every taxpayer has a set of fundamental rights they should be aware
of when dealing with the IRS. These are your Taxpayer
Bill of Rights.
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