Federal tax credits for energy-efficient home improvements are back, thanks to the fiscal cliff law passed by Congress in January.
Any eligible improvements you’ll make this year and those made in 2012 qualify for up to a $500 total tax credit. These include any insulation, exterior windows and doors, roofs, and heating, ventilation and air conditioning (HVAC) systems that meet Energy Star standards. Be sure to keep your receipts.
In addition, if you’ve installed solar panels, solar water heating, geothermal heat pumps or a small wind turbine on your home, you may qualify for a credit worth 30 percent of your costs. The improvements must be on an existing home and not for new construction.
To claim the federal energy tax credits, use IRS Form 5695.