How Do You Get Tax Credits For Energy-Efficient Homes?
One of the biggest incentives to make your homes more energy efficient has been the Energy Policy Act of 2005. This act gives tax credit to people who install energy-efficient windows and replace their heating and cooling systems with energy-conserving alternatives. Credits reduce your taxes by set dollar amounts, making them more advantageous than tax deductions. Read the guidelines set forth by the IRS. While products such as those that qualify for the Energy Star rating are eligible for the tax credit, they must be installed in their certified climate zones in order to get it. Energy-efficient replacements without the Energy Star rating may be accepted, but the IRS requires extensive documentation before it will authorize the tax credit. Keep impeccable records. While this is a good idea for filing taxes in general, it is especially important when claiming a tax credit, because you are asking the government to give you money. Keep your receipts and certification of energy efficiency
