Homeowners who purchased high-efficiency appliances and/or made energy-efficient home improvements in 2011 may qualify for Federal tax credits and should consider the steps needed to apply when preparing annual tax returns.
See complete information about Federal Tax Credits for Consumer Energy Efficiency.
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What is the credit?
The tax credits apply toward 10% of the qualifying upgrade cost, up to $500 or a specific amount from $50 to $300, for many new appliances and home improvement measures.
Do I qualify?
To qualify, the homeowner must have installed the equipment or completed the home improvement in 2011 on an existing home that is the customer’s principal residence. New construction and rentals do not qualify for most of the tax credits.
Some upgrades that likely qualify include:
- High-efficiency heating equipment, including a natural gas furnace or natural gas boiler with an efficiency rating of at least 95%
- High-efficiency storage or tankless natural gas water heater with an energy factor of 0.82 or higher
- Home insulation, weather-stripping, caulking and spray foam
- Energy-efficient roofing and windows, doors and/or skylights
How do I apply?
For products placed in service in 2011, customers will need to file the 2011 version of IRS Form 5695 and submit it with their 2011 taxes.
On the 1040 form, the residential energy tax credit (from Form 5695) is claimed on line 52. Residents should keep all receipts and the Manufacturer's Certification Statement for their records.