Energy Credits renewed for 2015 & 2016

Nonbusiness Energy Property Credit.

The law extends the energy tax credit for homeowners who make energy efficient improvements to their existing primary homes. The credit continues to be 10 percent of the cost of all qualifying improvements up to maximum credit of $500 for improvements placed in service in 2015 & 2016.

The credit applies to improvements such as adding insulation, energy efficient exterior windows and doors and energy-efficient heating and air conditioning systems.

The catch is you must reduce the potential 2016 credit of $500 by any credits that you claimed in 2006 through 2015. If you claimed more than $500 in energy credits during those years, then you cannot claim an additional credit this year.

The IRS has issued IRS Notice 2009-53 that will allow manufacturers to certify that their products meet standards.

Residential Energy Efficient Property Credit.

This nonrefundable energy tax credit will help individual taxpayers pay for qualified residential alternative energy equipment, such as solar hot water heaters, geothermal heat pumps and wind turbines. The credit is equal to 30 percent of the cost of qualified property.

Find details on qualification criteria at Energystar website



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