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Home Energy Tax Credits for 2015
April 20, 2015
It’s everyone’s favorite time of year again – tax season! However, if you’ve made any energy efficiency upgrades to your home in 2014, you’re in luck. Not only do energy efficiency home improvements save you money in energy bills, they can also help you pay less in taxes. Here’s what you can claim for in home energy tax credits on your 2015 tax return.
1. Non-business Energy Property Credit
This credit can be applied towards residential energy property costs, as well as up to 10% of any energy efficiency improvements. Eligible property and improvements include the following:
- Certain water heaters
- Electric heat pumps
- Central air conditioners
- Natural gas, propane or oil water heaters; and stoves using biomass fuel
- Qualified natural gas, propane or oil furnaces
- Qualified natural gas, propane or oil hot water boilers
- Certain advanced main air circulating fans used in natural gas, propane or oil furnaces
- Insulation reducing heat loss or gain
- Exterior windows, skylights, or doors
- Storm windows and storm doors installed over certain types of windows and doors
- Metal and certain asphalt roofs that reduce heat loss or gain
The Non-business Energy Property Credit has a lifetime limit of $500 for all years after 2005, which can be applied as listed below:
- Windows: $200
- Advanced main air circulating fan: $50
- Qualified natural gas, propane for oil furnace, or hot water boiler: $150
- Energy efficient building property, i.e., water heaters, heating and air-conditioning systems, etc.: $300
2. Residential Energy Efficient Property Credit
This property credit can be used towards 30% of the cost of alternative energy equipment that you have installed on your property. This includes:
- Solar electric property
- Solar water heating property
- Fuel cell property
- Small wind energy property
- Geothermal heat pump property
- Qualified fuel cell property credit is limited to $500 for each one-half kilowatt of capacity of the property
The Residential Energy Efficient Property Credit is not restricted by a dollar limit for most properties, but you would need to confirm whether yours qualifies. Also, the home doesn’t need to be your main residence but must be located in the United States. The Residential Energy Efficient Property Credit is available through 2016 – to apply for it, complete Form 5695 and attach it to Form 1040 (enter the credit on line 52).
To get a full understanding of how you can take advantage of available home energy tax credits in 2015, talk to a certified RESNET Home Energy Professional, and your tax professional. Also visit IRS.gov for more information.
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