Residential Energy Credits Are Back For This Tax Year – And Retroactive!

Residential Energy Credits Are Back For This Tax Year – And Retroactive!

Did you know that the tax credit for residential energy efficiency improvements is back? Seriously. Plus, they made it retroactive, so that you can go back and amend your tax return of you want to get the credit for years when it wasn’t available between January 1, 2011 and December 31, 2017. The credit will be valid for this year too.

Residential Energy Credits

It lets you claim a tax credit for 10 percent of the cost of qualified improvements. It’s worth a maximum of $500 for all years combined though. To apply for the tax credit, you must fill out IRS Tax Form 5695. To apply for a previous year, you’ll need to amend your tax return. It might be worth it though for a check for $500 that you weren’t even expecting!

Qualified Energy-Saving Home Improvements

A variety of improvements may qualify. So check your receipts and check the manufacturer to get a certificate that shows the improvement qualifies. Here are some improvements that may qualify:

  • Energy-efficient windows, doors, and skylights
  • Insulation
  • Water heaters
  • Roofing products
  • Biomass stoves
  • HVAC
  • Geothermal heat pumps
  • Ductless mini-splits
  • Wind turbines
  • Solar systems
  • Fuel cells

Reasons You Might Not Qualify

The product itself may not qualify for the tax credit. Consult the manufacturer. You may also not qualify if your income is so low that it’s not taxed at all or if other tax credits reduced your tax liability to zero.