Snagging Tax Credits for Home Improvements

Don’t forget that the tax credits for energy efficiency home improvements still are available for purchases through the end of 2013. These credits were part of the stimulus in the financial crisis and have been extended, but they’ll expire for purchases after Dec. 31, 2013.

A wide range of home improvements or replacements qualifies for the credit. Generally, your new item must be an Energy Star certified property, though not all Energy Star items qualify. The product manufacturer or installer is supposed to tell you if the item qualifies.

For example, new windows, doors, or skylights (whether new to your home or replacing an existing item) qualify for a credit of 10% of the cost up to $500 ($200 for windows). Installation costs don’t qualify for the credit.

Also qualifying for this credit (but with different limits for each item) are water heaters, roofs, insulation, heating, ventilating, air conditioning, and biomass stoves. Other credits are available for fuel cells, wind turbines, geothermal heat pumps, and solar energy systems.

Details are available at www.energystar.gov. Click on the “Tax Credits” link.

RW December 2013.