Green Efficient Tax Credits That Expire Soon

December 28, 2010 | By: TaxCure Staff

energy tax creditsOver the last several years there have been numerous tax credits available to taxpayers when they make positive lifestyle “green” purchases. These energy-efficient tax credits are offered when you make a purchase that will have a positive environmental impact. These tax credits are dollar for dollar deductions right off your total tax bill. If you want to cash in on them, however, you do not have much time left. Here are the ones that will be expiring.

Home Energy Tax Credit

Home energy tax credits are available through 2010 on a variety of energy-efficient products. For all of the listed products, in order to qualify the tax form, you need to fill out is the 5695. It must be submitted with your tax return for 2010 in order for you to receive the credit. Make sure that you have proof that your purchase qualifies in the form of a Manufacturer Certificate Statement. Additionally, note that your tax credit total between all items installed will be 30% of the purchase price or $1500, whichever is less.

Energy Efficient Doors, Skylights, and Windows.

If you have replaced your doors, windows or skylights in your primary residence you may be eligible for a tax credit. Note that only the cost of the windows is eligible, labor and installation costs are excluded. In order for the items to qualify the U-Factor and the Solar Heat Gain Coefficient have to carry a rating of .30 or less.

Biomass Stove. If you have a biomass stove installed in your primary residence that burns some type of organic material like corn or wood you could be eligible for the home energy tax credit. In order to qualify the stove must carry a thermal efficiency rating of at least 75%. Installation costs can be factored into your tax credit.

Commercial Storage Tank. If you install into your primary residence an energy-efficient water heater that has an energy factor of 82 or better or has a 90% thermal efficiency rating you may qualify for the tax credit.

Air Source Heat Pumps and Central Air Conditioning. If you install a new furnace or central air-conditioning into your existing primary residence you may be eligible for the tax credit. Gas, propane, and oil furnaces all may qualify.

Asphalt Roofs. If you install a reflective roof that helps to decrease heat gain on your primary residence you may be eligible for the tax credit.

Insulation. If you install insulation in parts of your primary residence like the exterior walls, in crawl spaces, attics, and other places that lower your heat loss you can be eligible for a tax credit. Labor and installation costs are not included.

Alternative Fuel Automobiles

Some alternative fuel tax credits are still available through the end of this year. The credits vary between different manufacturers and models. It is important to note that you may get your tax credit spread out over a few years, not all at once. The tax credits have already been fully given out for some manufacturers and before purchasing you will want to ask the dealer and refer to the IRS website to know that you will indeed qualify. The form you will need to fill out is the 8910 and it will need to be submitted with your 2010 tax return.