Energy Tax Credits are Back

As part of the American Taxpayer Relief Act of 2012 (aka “debt ceiling bill”), Congress has renewed the energy tax credits that had previously expired at the end of 2011. The amounts remain the same — a $500 max deduction with a $200 cap on windows — however the lifetime cap on the credit that previously existed appears to have been removed. Installation costs are still not included, so if the invoice you received does not reflect that, contact the company that performed the work for an updated copy.

Highlights:

  • A homeowner tax credit of 10% of the product’s cost (NOT including installation) up to $500, with a $200 cap on windows
  • Products must carry the ENERGY STAR® logo, and must be installed between January 1st, 2012 and December 31st, 2013

How to get your credit:

  • Purchase ENERGY STAR® qualified window or door products
  • Keep the NFRC label that accompanies your product, OR print the manufacturer certification statement for your records
  • Provide your invoice with the labor separated from the rest of the job to your tax preparer and claim your credit on your 2012 or 2013 taxes

The IRS looks at the invoice date when determining what tax year the credit is eligible for, so if products were ordered in 2012 but not installed until 2013, then the tax credit would apply for the 2013 tax year.

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