Federal Energy Tax Credits

Tax Credit Information for 2011

In 2010, federal tax credit covers 30% of cost improvements for energy efficient doors and windows, insulation, roofs, water heaters, biomass stoves and heating and air conditioning systems. Taxpayers can get a credit of up to a total $1,500 for all qualifying improvements made to their principal residences during 2009 and 2010. To qualify for the credit in the 2010 tax year, not only do items need to be purchased, but they also have to be installed and working by December 31, 2010.  The legislation that extended tax cuts, also extended, but significantly reduced the home energy tax credit for 2011.

In 2011,  homeowners can claim up to $500.  It is a lifetime tax credit, meaning that if you have claimed the maximum of $500 in past years for home efficiency upgrades, you won't be able to claim it again.

 Be sure to obtain a copy of the manufacturer's certification letter to ensure that a product qualifies for the tax credit.  Keep this for your records, along with all receipts, if you are audited.

Installation costs are not covered for installing insulation, doors, windows, solar screens or roofs, but biomass stoves, water heaters, heating and air conditioning systems are covered.

All the information about the Federal Energy Tax Credit Program, otherwise known as the American Recovery & Reinvestment Act of 2009.  It is long and boring, BUT solar screens do quailify if they meet the requirements.  Of course, you should rely on your personal accountant as the final authority.  To qualify for the tax credit you must have a certain type of window based on your location, either single or double paned.  Then you need the Manufacturer's Certification Statement. and finally you need a solar screen bill broken down with the cost for labor seperate from the materials.

Tax Credit Information for 2009, 2010

You will need to, or have your accountant download the following files.  One contains the Department of Treasury, Internal Revenue Service Form 5695 to apply for Residential Energy Credits. The other provides a copy of the StarShade Manufacturer's Certification Statement.  Although you do not have to file the certificate with your tax return, it is a good idea to have a copy handy.