2011 Tax Credits Return

From a recent article published in the News & Observer* on January 26, and thanks to the American Taxpayer Relief Act, homeowners are again able to claim tax credits on certain home improvements such as insulation, energy–smart windows and highly efficient furnaces. Additionally, these credits are retroactive; meaning improvements made in both 2012 and 2013 will qualify. The program still has a cap of $500 in total credits so if you’ve already claimed $500 in credits for energy-efficiency improvements; you’re not eligible for more.

To claim a tax credit, you’ll need to file Form 5695 along with your federal tax return for the year the improvement is made. The credit will be subtracted from the amount of tax you owe or added to your tax refund. You are also required to obtain for your records a manufacturer’s certification statement which indicates the product qualifies for a tax credit. Get all the details on how to qualify HERE.

Blue Ribbon Residential Construction can help you make energy efficient investments in your home. Here are some of the credits you can take advantage of:

• 10% of the cost of insulation materials and systems, not including installation.

• 10% of the cost of qualifying exterior doors, windows and skylights, not including installation.  (Credits for windows and skylights are capped at $200.)

• 10% of the cost of metal and asphalt roof’s specially designed to keep buildings cooler, not including installation.

• $50 for a furnace fan called a main air circulating fan

• $150 for a natural gas, propane or oil furnace or hotwater boiler with an annual fuel utilization efficiency rate of 95% or greater.

• $300 for an electric heat pump water heater with an energy factor of at least 2.0

• $300 for a highly efficient electric heat pump

• $300 for a highly efficient central air conditioner

• $300 for a natural gas, propane or oil water heater with an energy factor of at least 0.82 or a thermal efficiency of at least 90%

• $300 for a biomass stove

If Blue Ribbon has helped you with energy efficient projects in 2012, give us a call for the information you need to get your tax credit.

* Original article by Mary Beth Breckenridge, Akron Beacon Journal