I received several questions on the energy credit this week and now is a good time to review this as the we head into winter.
The tax credits are available at 30% of the cost, up to $1500 for: windows, doors, insulation, roofs, HVAC, non-solar water heaters, and biomass stoves. The credit is available for tax years 2009 and 2010 and applies to existing homes only.
Tax credits for 30% of cost to tax year 2016 with no upper limit applies for: geothermal heat pumps, solar panels, solar water heaters, small wind systems, and fuel cells. These credit are for new and existing homes.
The questions this week focused on the amount of credit for those in lower income brackets. The energy credits are non-refundable, meaning you must have a income tax liability to deduct them. A good starting point is last year's tax return. Review your tax liability with your tax professional and make sure you benefit if taking the credit.