If you were thinking about making an energy efficiency improvement to your Valley-Metro home (like installing a high-efficiency furnace), December was the time to do so.
December 31, 2013 was the last chance to take advantage of energy efficiency federal tax credits.
These tax credits were 10% of the cost of the energy efficient home improvement (up to $500) or a specific amount from $50 to $300.
A tax credit is a direct reduction of the total taxes you owe. This one makes it easier to afford energy efficient products that will lower your energy bills month after month.
What energy efficiency home improvements can I apply the tax credits to?
The tax credits apply to these products, provided they meet certain energy efficiency requirements:
- Air source heat pumps ($300)
- Natural gas, propane or oil furnaces ($150)
- Air conditioners ($300)
- Non-solar water heaters ($300)
- Boilers ($150)
- Insulation (10% of cost, up to $500)
- Metal and asphalt roofing (10% of cost up to $500)
- Windows and doors (10% of cost, up to $500, but windows are capped at $200)
- Advanced main air circulating fan ($50)
- Biomass stoves ($300)
See energy efficiency requirements needed for each home improvement on ENERGY STAR’s website.
These products must have been installed in your home on or before December 31, 2013 to apply for the tax credit.
How is a tax credit different from a tax deduction?
Like we said before, a tax credit is a direct reduction of the total taxes you owe. Governments give tax credits to promote a specific behavior.
A tax deduction reduces the percentage of your income that is taxed. Tax deductions are from things like mortgage interest, personal exemptions and retirement contributions.
How to do I apply for the home energy efficiency tax credits?
Submit the 5695 form with your 1040 tax form.
Call a reliable Cooper Climate Control for help
Cooper Climate Control can install many of these energy efficient products in your home. We also offer financing to make them easier to afford.