Its Tax Season and people are always looking for new ways to save money, now you can on your roof! Did you know that our government has extended the energy tax credit for existing homes? They have – and this is great news. But what exactly does this mean for you and how do you qualify?
Here are the details about the energy tax credit and how to qualify.
1. The energy tax credit has been extended through December 31, 2013 but the improvements must be done before December 31, 2013 to qualify.
2. You may be eligible to claim the $500 energy tax credit. When you file your taxes you will need to file the IRS Form 5695.
3. Limits = 10% of your expenditures, for a combined lifetime total of $500. Just to clarify – this is a combined total of all your energy improvements for a lifetime total of $500.
4. Make sure you save all of your receipts and any labels you have.
5. If you install a new roof, only the roof is covered. The actual installation cost is not.
6. You can read all of the guidelines and see everything that is covered in detail at: http://www.energystar.gov. I would highly recommend that you read over this so that you know exactly what is and is not covered and exactly what you need to do to make sure you get the credits that are offered.
7. Word of caution – not all roofs are covered, even if they contain the Energy Star seal. There are only specially manufactured roofs that are eligible. You can find a list of these on the Energy Star site at: http://www.energystar.gov.
8. Don’t take the word of a contractor as truth. Some contractors may not be aware of all the details but yet will promise you that their product will get the credit. Some contractors will do or say anything just to get the sale. So do your homework and know for a fact what is and is not covered before you sign a contract with any contractors.
I strongly encourage you to take advantage of these energy tax credits before they are gone. This is a great way to save some money on your taxes and on your electric bill.