The American Taxpayer Relief Act of 2012 passed by Congress on January 3, 2013, provides extensions of energy tax credit provisions that benefit homeowners seeking energy-efficiency improvements. Under section 25C, homeowners can claim a $500 maximum tax credit to cover material costs of energy-efficient upgrades to existing homes for all taxable years. The credit is only redeemable if the upgrades are in place by the end of 2013.
This $500 tax credit is only available to taxpayers that have not previously used it in prior years. Here is a list of projects that Windows on Washington offers that are currently eligible for the tax credit:
Insulation - Additional insulation to walls, ceilings, or other part of your home that meet standards set in 2009 IECC.
Air Sealing - Sealing cracks around your home and ducts to reduce infiltration and heat loss in a manner consistent with the 2009 IECC.
Replacement Windows and Exterior Doors - 10% of material cost, up to $200 for replacement windows and exterior doors that meet Energy Star requirements. The replacement windows must have performance values equal to or below a 0.30 U factor and a Solar Heat Gain Coefficient (SHGC) of 0.30.
Skylights - 10% of material cost up to $200 and must meet Energy Star requirements.
The IRS requires homeowners to obtain paperwork from the manufacturer that certifies that the products used in the home improvement meet or exceed the standards outlined in the Taxpayer Relief Act. You will not have to submit this certification to the IRS when you file but you will need to keep it in case the IRS has any questions about your project.
Click here to access IRS guidance on qualifying energy-efficient property.
