Claim Tax Credits for Home Energy Efficiency Improvements Done in 2013

If you completed certain eligible energy efficiency improvements last year, you may qualify for credit when you file your 2013 taxes this year.

Remember, though, improvements must have been installed in 2013, not just purchased, and generally, claims can only be made on your primary residence.

Eligible measures may include doors, windows, and insulation, as well as heating, cooling, and water heating upgrades. There are additional resources to help you determine your eligibility:

• IRS Tax Tip 2013-48
• Database of State Incentives for Renewables & Efficiency
• Alliance to Save Energy, Home, and Vehicle Tax Credits
• ENERGY STAR Federal Tax Credit for Consumer Energy Efficiency
• Consumer Reports Tax Credits for Energy Efficiency Upgrades

Many of the tax credits for home energy improvements expired on December 31, 2013, meaning they will no longer be available in 2014.

Don’t fret! You do have options to help offset the cost of home improvements you plan to make this year:

• First, remember that even without a tax credit, many improvements you invest in will save you money over the long run, as you’ll likely see reduced energy bills down the road.
• Some tax credits have already been extended through 2016, including credits for geothermal heat pumps, solar photovoltaic cells, solar water heaters, and fuel cells. See this Alliance to Save Energy resource for more.
• Another option is to seek rebates or other financial incentives beyond tax credits to help offset the cost of energy efficiency improvements to your home. Energy Impact Illinois, an alliance to help Illinois residents lower energy costs, helps you find applicable rebates and incentives. For more on Energy Impact Illinois or suggested home energy improvements, call 1-855-9-IMPACT (1-855-946-7228).
• Further, if you purchased an eligible electric vehicle after December 31, 2009, you may be eligible for credits of up to $7,500. For more details, consult the IRS list of Qualified Plug-in Electric Drive Motor Vehicles (IRC 30D), the Alliance to Save Energy Home And Vehicle Tax Credits Resource, or the U.S. Department of Energy’s Fuel Efficient Vehicle Tax Incentive Information Center.
• You may also be eligible to claim a tax credit on many energy efficient appliances, including ENERGY STAR qualified models. Remember, though, not all ENERGY STAR products are eligible.
• Lastly, stay tuned. Expired tax credits are sometimes retroactively renewed in time to file your taxes. If we hear of any that pertain to home energy efficiency improvements, we’ll post them here and on the CNT Energy Facebook page.

As we’re not tax experts, please consult with your tax advisor for any further details on your particular situation.