Federal Energy Tax Deductions for 2011, 2012
You may be eligible for a federal tax credit if you purchase an energy efficient product or renewable energy system for your home.
If you are familiar with the ENERGY STAR products don’t think they all qualify for the tax credit because not all of them qualify. Your energy bills will be lower if you use the products with that label but, make sure your specific item qualifies before you try to take the credit for it.
Principal Residence
First of all the energy tax deductions must be for your existing home and your principal residence. This tax deduction does not apply to new construction or rentals. The tax credit is for 30% of the cost up to $1,500 for the following items;
· Biomass Stoves
· Heating, Ventilating, Air Conditioning (HVAC)
· Roofs (Metal & Asphalt)
· Water Heaters (non-solar)
· Windows & Doors
Existing Homes & New Construction Principal Residence & Second Homes
This energy tax credit does not apply to rentals but, it will save you 30% of costs with no upper limit. The items listed here will qualify for this energy tax credit;
- Geothermal Heat Pumps
- Small Wind Turbines (Residential)
- Solar Energy Systems
Existing Homes New Construction Principal Residence
This energy tax credit does not apply to rentals or second homes. You will save 30% of the costs and up to $500 per .5 kW of power capacity.
- Fuel Cells (Residential Fuel Cell and Microturbine System)
Tax Credits
Tax credits are generally more valuable than a tax deduction because a tax credit reduces tax dollar for dollar. If you want to lower your energy bills, reduce air pollution, increase indoor comfort, lower gasoline costs, and release fewer emissions into the atmosphere then, please purchase fuel efficient vehicles and energy efficient appliances.
Federal Tax Incentives State Rebates
Some products will qualify for federal incentives and some will be eligible for state rebates. There are also state incentives for energy efficient homes, vehicles and equipment. You may want to check the web site for each state’s energy office for more information on specific state tax information.
Learn More About Federal Energy Tax Deductions
If you would like more information about tax deductions or credits for energy efficiency you should visit the TurboTax Online web site. The income tax preparation software will scour your tax return for over 350 deductions.
You will not miss one single deduction you deserve to claim. TurboTax Online will make sure your deductions do not slip through the cracks and you are guaranteed the biggest refund possible!
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