2014 FEDERAL ENERGY TAX CREDIT FOR WINDOWS
Many homeowners have been waiting to see what tax incentives the
government is offering for energy efficient home improvements made to
homes in 2013. By taking advantage of the 2014 residential energy tax
credit, homeowners who have invested in energy-saving measures to their
homes may be able to reduce their tax burden, if they qualify.
Nonbusiness Energy Property Credit
The Nonbusiness Energy Property Credit can be applied towards any
residential energy property costs that were paid or incurred in 2013. It
can also be put towards 10% of the cost of qualified energy efficiency improvements that are new and can be expected to remain in use for at least five years, and meet energy efficiency requirements.
- Eligible residential energy property includes:
- Certain electric heat pumps water heaters; electric heat pumps;
central air conditioners; natural gas, propane or oil water heaters; and
stoves using biomass fuel.
- Qualified natural gas, propane or oil furnaces; and qualified natural gas, propane or oil hot water boilers.
- Certain advanced main air circulating fans used in natural gas, propane or oil furnaces.
Eligible energy efficiency improvements include:
- Insulation: Must be specifically designed to reduce heat loss or gain of a home.
- Exterior doors.
- Exterior windows, including skylights.
- Metal or asphalt roofs with pigmented coatings or cooling granules specifically designed to reduce the home's heat gain.
- This credit has a lifetime limit of $500 for all years after 2005, broken down into the following bracket:
- $200 for windows.
- $50 for any advanced main air circulating fan.
- $150 for any qualified natural gas, propane for oil furnace, or hot water boiler.
- $300 for any item of energy efficient building property, i.e., water heaters and heating and air conditioning systems.
- To qualify for the Nonbusiness Energy Property Credit, your main home must be located in the U.S.
- Check with the manufacturer for written certification to make sure
their product(s) are eligible for this home energy tax credit. You can
usually find it posted on their website(s) or with the packaging.
- Keep the certification with your tax records; there is no need to attach it to your return.
- Although this credit expired at the end of 2013, you can still claim
the credit on your 2013 tax return if you didn't reach the lifetime
limit in prior years.
- Should the total of nonbusiness energy property credits you have
taken in previous years (after 2005) exceed more than $500, you cannot
apply for this credit for 2013.