In case you haven't finished doing your taxes, here is one overlooked deduction you may be eligible for, the Energy Tax Credit.
There are two types of Energy Tax Credits: The Residential Energy Efficiency Property Credit, and the Nonbusiness Energy Property Credit.
The Residential Energy Efficiency Property Credit
Equipment that qualifies for the Residential Renewable Energy Tax Credit includes solar, wind, geothermal and fuel-cell technology like:
- Solar panels
- Solar-powered water heaters
- Wind turbines
- Geothermal heat pumps
The credit is equal to 30 percent of the cost, including installation. There is no upper limit on the amount of the credit for solar, wind and geothermal equipment. You don't need to cover your roof with solar panels to qualify. In fact, I installed those tube type skylights with portable solar lighting in my home. Guess what? Tax deduction of around $1K!
The Nonbusiness Energy Property Credit
This credit is much easier to get. The IRS divides this credit into two sections:
- qualified energy efficiency improvements such as insulation, storm doors, etc
- residential energy property costs like energy efficient heat pumps, water heaters, furnaces, air conditioners, etc.
You can claim a tax credit for 10 percent of the cost of qualified energy efficiency improvements and 100 percent of residential energy property cost.
So, if you did ANY home improvement work in the last year and have the receipts, you should check them out, you may be able to save a ton of money on your taxes - oh and you can make the earth a greener place too!