Wednesday, March 7, 2012

Tax Credit for Homeowners May Help Offset Cost of Windows

The U.S. Internal Revenue Service (IRS) offers a tax credit for certain qualified home energy improvements implemented during 2011.

One of these tax credits is known as The Non-business Energy Property Credit. Qualifying improvements include energy-efficient exterior windows and doors. Installation costs do not qualify.  

The 2011 credit for homeowners is 10 percent of the cost of qualified energy-efficient improvements, up to $500.

Qualifying improvements must have been placed into service in the taxpayer’s principal residence located in the United States before Jan. 1, 2012.

Those applying for this credit should have the manufacturer’s tax credit certification statement. This may be available on the manufacturer’s website, or it may have been included in the product packaging.

If you’re eligible, you can claim this credit on Form 5695, Residential Energy Credits when you file your 2011 federal income tax return. This form is available at www.irs.gov.

Please note that this is a tax credit, not a deduction, so it will generally reduce the amount of tax owed dollar for dollar.

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