Monday, January 28, 2013


The American Taxpayer Relief Act extended the “Nonbusiness Energy Property Credit” for qualified energy efficiency improvements or residential energy property costs for your primary principal residence, which had expired on December 31, 2011, through 2013, making it retroactive to January 1, 2012.  
The credit is 10% of the qualified cost up to a maximum of $500. Some items are limited to a credit of from $50 - $300.  
The $500 is a “lifetime” limit. If you claimed over $500 in energy tax credits from 2006 - 2011 you are not eligible for a credit for 2012.

The credit is available for –

* Biomass Stoves

* Heating Ventilating, Air Conditioning (Advanced Main Air Circulating Fan, Air Source Heat Pumps, Central Air Conditioning, Gas, Propane, or Oil Hot Water Boiler, and Natural Gas, Propane or Oil Furnace)

* Insulation

* Roofs (Metal and Asphalt)

* Water Heaters (Gas, Propane or Oil Water Heater, and Electric Heat Pump Water Heater)

* Windows and Doors

There are very specific “energy efficiency” requirements for each of the above items.  Not every new window, door, boiler, furnace, or roofing improvement will qualify.  You can go to the
Energy Star website to find out what the specific qualifications are for individual items.
You may have to wait a few days before the above referenced Energy Star website has been updated for the new extension.  When I checked the site I found the following message - “Updates to information regarding recent tax credit changes are in process and will be posted here within the next 7 business days.”

When giving your tax pro your “stuff” next February or March do not just include a copy of the bill for one of the listed items, or a note that you spent $800 for a new hot water heater, and expect him/her to waste his/her valuable time attempting to determine if the purchase qualifies for the credit. Do the homework and determine if your purchase qualifies before contacting your tax pro. 

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