If you invested in upgrading your home with energy efficient appliances or products you may qualify for the “Residential Energy Tax Credit”. These tax credits are especially attractive as they allow you to itemize & deduct dollar to dollar, up to 10% of the amount you spent, on certain approved energy-efficient upgrades. This deduction does carry with it a lifetime cap of $500.00 (possibly less on some). So, please pay close attention if you have claimed any qualifying energy-efficiency deductions in years past on your return.
Here is a partial list of upgrades that may qualify.
1. Heating, Ventilation, and Air Conditioners
4. Water Heaters
5. Windows, Doors & Skylights
6. Stoves that use Bio-Mass fuel
***Please note: If a product has earned the Energy Star designation that does NOT automatically qualify it for the deduction. Not all ENERGY STAR certified products qualify for a tax credit.
Please check with a Licensed Professional or source for a complete list.