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Insulation Tax Credit
Insulation Tax Credit
Many of the energy-efficiency improvements made to your home fall within the qualifications of the Insulation Tax Credit. The following information pertains to the eligibility and qualifications that allow you to claim the insulation tax credit.
Some, though not all, energy-efficient products qualify for the insulation tax credit. There are three parts to the energy efficiency improvement tax credit which allow you to claim 30% of the cost with other stipulations.
The first home improvement tax credit can be claimed for the following products:
•Heating
•Ventilation
•AC (HVAC)
•Insulation
•Roofs (Metal & Asphalt)
•Water heaters (non-solar)
•Windows and doors
You can claim 30% of the cost up to $1,500; the insulation tax credit expires December 31, 2010. You must meet the criteria of the product being placed in an existing home and it must be your principal residence; rentals do not qualify.
The second home improvement tax credit can be claimed for the following products:
•Geothermal heat pumps
•Small wind turbines for residential use only
•Solar energy systems
As with the first credit, you can claim 30% of the cost, but this time with no limit on the total amount; the second tax credit expires December 31, 2016. These products must be placed in an existing home or new construction home that is used as your principal residence or 2nd home. Rentals do not qualify.
The third home improvement tax credit can be claimed for the following products:
•Fuel Cell
•Fuel Cell and micro turbine system
You can claim 30% of the cost up to 500 per .5KW of power capacity; this tax credit also expires December 31, 2016. There is one more stipulation that must be met before you can claim this credit: the product being replaced must be in an existing home or a new construction home and the home must be your principal residence; 2nd homes and rentals do not qualify.
To learn more about the home improvement insulation tax credit and other realted energy efficient tax credits visit TurboTax Online.
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