Tracy’s Tax Tips #10: Credit for Energy Efficient Improvements

If you went green last year, you may be able to get some help on your taxes.

I’m Tracy Byrnes with the FOX Business Network, here with another of Tracy’s Tax Tips:

If you bought new energy efficient windows, doors, insulation and certain air conditioning, heating or hot water systems, you may qaulify for a credit of 30%, or a maximum of $1,500.  Now, the improvements must remain in use for at least five years, and they must meet certain energy efficient requirements.  So, how do you know what the requirements are?  In most cases, you have to rely on the contractor or the manufacturer to tell you.

The credit, which runs through 2016 thanks to the American Recovery and Reinvestment Act of 2009.  And there’s one more catch: everything must have been installed before the end of the year to qualify for the credit.  That means purchasing something and leaving it in the garage for installation later won’t cut it.  You have to report these credits in Part II of IRS Form 5695, “Resident Energy Efficient Property Credit.”

I’m Tracy Byrnes, FOX News Radio.