Thanks to the American Taxpayer Relief Act of 2012, the non-business energy property credit has been extended through 12/31/13. If you’re planning to make “green” improvements around your home in 2013, you may be able to take advantage of this credit through the 2013 tax year (and if you did make “green” improvements in 2012, you may be able to take advantage of the credit on this year’s tax return!).
Here’s what you need to know:
- Qualifying improvements include: adding insulation, energy-efficient heating and cooling systems, energy-efficient windows, etc.
- You must make these upgrades to your primary residence located in the United States.
- The credit is worth 10% of all qualifying improvements and has a maximum limit of $500 ($200 for windows and skylights).
- Be careful when you’re shopping. Manufactures must certify that their products meet the energy-efficient standards and must provide you with a written statement (i.e. on the packaging or on their website).
- Qualifying improvements must be placed in service by December 31, 2013.