Thinking of upgrading your house? Did you know you can save money on taxes by making your home more energy efficient?
If you’re considering replacing your exterior doors, windows, or skylights, or adding some much needed insulation, you could qualify for a tax credit of up to $3,200.
Here’s how it works: First, make sure your home is in the United States, already built (not brand new), and is where you live most of the time (not a rental). Once your home meets that criteria, find products with the Energy Star label or ask the manufacturer or store if the product is eligible. These ensure your upgrades meet energy standards and ensure you qualify for the tax credit.
Once you’ve made these improvements, keep your receipts, installation records, and any Energy Star or NFRC (National Fenestration Rating Council) labels handy. These documents will help you claim the credit when you file your taxes.
Head over to irs.gov/credits-deductions/HomeEnergyTaxCredit and walk through the steps to claim your tax perks.
Visit the frequently asked questions page to find answers to qualification questions: irs.gov/EnergyEfficientQs.
WHAT FORMS DO I NEED
When filing your tax returns, you must fill out Form 5695, once you’re ready to fill it out, head straight to the PDF irs.gov/pub/irs-pdf/f5695.pdf by clicking this link.
WHAT PRODUCTS QUALIFY
Want to make sure your new appliances fit the criteria? Visit energystar.gov for all approved products.
SHARE WITH OTHERS
Share this URL with your friends and family who would benefit from the opportunity to save money through energy-efficient home upgrades. Spread the word so others may take advantage of these savings too!