The recent “Fiscal Cliff” agreement included a “non-business energy property tax credit,” that offers homeowners up to a $500 credit for residential efforts for energy efficiency. In essence, this is a renewal of the energy efficiency tax credits for homeowners that were in place in 2011.
The American Taxpayer Relief Act extended the tax credit through the end of 2013 and also made it retroactive back to January 1, 2012. Therefore, any projects you completed last year or will undertake this coming year will qualify for the credit. The credit applies to the cost of building materials for insulation, exterior windows and doors that meet Energy Star requirements, and roofs. It also covers some air conditioners, heat pumps, furnaces and water heaters.
One caveat, homeowners are allowed a maximum tax credit of $500 for projects undertaken from 2006 through the end of 2013. So if you’ve already claimed a portion of the tax credit in earlier years, you will only be entitled to the balance you qualify for, up to $500.
