Home Tax Credit Extended

As tax season comes into full swing, many of you are probably looking for any tax breaks you can get. The great news is a home tax credit that was valid through 2012 was just extended through 2013. Homeowners can claim up to $500 in tax credit to cover material costs of energy-efficient upgrades to existing homes. This means that homeowners who made these upgrades during 2012 are also eligible for the credit, along with anyone who wishes to upgrade their home during 2013. \

Great news!

 So what does it cover?

 The tax credit can be applied to any of the following upgrades:

•    Insulation - Additional insulation to walls, ceilings, or other part of the building envelope that meets the 2009 IECC (& supplements) specifications.

• Windows - 10% of material cost, up to $200 for replacement windows and skylights, and exterior doors that meet EnergyStar requirements.
• Windows must be equal to or below a 0.30 U factor and a Solar Heat Gain Coefficient (SHGC) of 0.30. Storm windows that meet the IECC in combination with their paired external window are eligible (taking into account the applicable climate zone). Storm doors paired with U-factor rated wood doors are eligible provided they do not exceed the default U-factor requirement for the combination. See the 2009 IECC for details.
• Window Films -The product must meet the requirements of a "qualifying insulation system" and be manufacturer certified.
•   Home Sealing - Sealing cracks in the building shell and ducts to reduce infiltration and heat loss in a manner consistent with the 2009 IECC.
• Electric Heat Pump - Must yield an energy factor of at least 2.0 in the standard Department of Energy test procedure.
• Natural Gas & Propane Furnaces - Credit of up to $150 for furnaces that meet an Annual Fuel Use Efficiency (AFUE) 95 or higher. Oil furnaces and gas, oil and propane boilers must meet an AFUE of 90 or better.
• Central air Conditioning Units and Air-Source Heat Pumps - Credit of up to $300 for units that meet the highest tier standards set by the Consortium for Energy Efficiency (CEE) as of February 17, 2009, which in most cases requires a Seasonal Energy Efficiency Ratio (SEER) of 16.
• Natural Gas, Propane, or Oil Water Heaters - Must have an energy factor of at least 0.82 or thermal efficiency of at least 90 percent.
• Biomass Fuel Property - A stove that burns biomass fuel to heat a dwelling unit located in the United States and used as a principal residence by the taxpayer; or to heat water for said dwelling unit, and must have a thermal efficiency rating of at least 75 percent.

What if I already upgraded?

If you made any of these upgrades during 2012, you can claim the $500 tax credit on your 2012 tax return. Just tell your tax preparer that this is listed under section 25C of the American Taxpayer Relief Act of 2012.

How can this help during 2013?

 

The tax credit can only be claimed once, so if you plain to claim it on your 2012 taxes, you will not be able to use it again in 2013. However, if you were on the fence about any energy-efficient upgrades before, this should certainly push you in the right direction.

Energy efficient upgrades already have a very high return on investment, as they lower your utility costs and eventually pay for themselves. Now, thanks to this tax credit, you can speed up that return on investment quite a bit. If you make any of the eligible upgrades during 2013, you can expect up to $500 back from your 2013 tax return. Not a bad deal, right?

So how do I know what I need?

You can leave that up to us. We can take a look at your home and figure out exactly what you need to make your home more energy efficient. We can also help make sure that any and all upgrades are eligible for this particular tax credit. Just give us a call at 877-526-3202 or send us an email at info@affordablecomfort.biz.