Scottsdale Taxes | Energy Credits
Taxpayers can reduce their energy consumption as well as save on their income tax bills with certain home improvements. Here are some key pieces of information taxpayers need to know about the home energy tax credits.
Non-Business Energy Property Credit
- Part of this credit is worth 10% of the cost of certain energy saving items you add to your primary residence. These improvements include insulation, windows, doors and roofs.
- The other part of this credit is not based on a percentage of certain costs. This part is for the actual cost of certain property. These improvements include certain water heaters and heating and air conditioning systems. The credit amount for each type of property has different dollar limits.
- The non-business energy property credit has a maximum limit of $500 of which only $200 of this limit can be used for windows.
- Your main home must be located in the United States to qualify.
- Taxpayers should make sure to have written certification from the manufacturer that the piece of property qualifies for this credit.
- This credit was set to expire in 2013, but was extended through 2014.
Residential Energy Efficient Property Credit
- This credit is 30% of the cost of alternative energy equipment installed on or in your house.
- The home must be located in the United States but does not need to be your primary residence.
- Qualified improvements include 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. The unused portion of the tax credit can be carried forward to next year’s tax return.
- This credit is set to expire at the end of 2016.
If you have any questions or would like more information, please contact us at Dusseau & Makris, PC, your Phoenix CPA firm.