2013 is fast coming to an end, and you are down to your last chances to be able to shave some more money on what you will owe the government when you file your taxes in a couple of months.
Thanks to the “Fiscal Cliff” bill (American Taxpayer Relief Act of 2012) that passed on New Year’s Day back in January, the Energy Efficiency Tax Incentive from 2012 that was offered for putting in energy-efficient windows was extended for 2013. But, this does not mean that it is going to be extended again in 2014. So, don’t take a chance and assume it will be, instead get your deduction in for 2013.
How Do You Qualify for This Tax Credit?
To qualify for the Energy Efficiency Tax Incentive, you have to purchase energy-efficient windows for your home. These just can’t just be any energy-efficient windows though; they have to also have a Manufacturer Certification Statement. This statement comes from the manufacturer and verifies that the window qualifies for the tax credit.
If the company you hire to install your new energy-efficient windows can’t provide this, you can’t claim the tax credit. If claiming the tax credit is important to you, you need to ask this question before you agree to have new windows installed by any company.
The amount of the tax credit you can claim is for 10% of the cost of the windows. For example, if your new energy-efficient windows cost $1000 you can claim $100 of that as a tax deduction. The max tax deduction you can claim is $500.
These deduction rules are the same as they were for energy-efficient windows that were installed in 2012, but again, they may not be around in 2014.
Don’t Forget About the State
The Federal Government isn’t alone in encouraging homeowners to become more energy efficient (green); state governments are also. Depending on the state, the levels of tax deductions (if there is one) can vary, but there may also be other incentive programs beyond tax credits in your area that you can take advantage of. You can check to see if your state offers these deductions at the Database of State Incentives for Renewables & Efficiency’s website.
You can also contact us with any questions that you may have regarding Federal and local incentive programs, and we would be happy to help.