'Tis the season for taking advantage of tax credits for energy efficiency. The December 31 deadline for energy efficiency improvements eligible for the 2009 tax credit is approaching (and in some parts of the country, so is cold weather), so there's never been a better time to make upgrades to your home.
Now, because there's so much to be done, you may be scratching your head about how - and how best - to take advantage of the energy efficiency tax credit. So we've compiled here a short list.
Online resources to help you make the most of the incentive:
- For step-by-step instructions about filing for your energy efficiency tax credit, eHow has a good, clear, concise, and link-rich rundown. Tax Gab also has a good synopsis of the credits available - short, sweet, and numerical.
- For general information (as well as some pretty specific technical information) about what products qualify for the credit, see the Energy Star website.
- For HVAC specific questions, Trane Residential details the efficiency requirements specific to the various types of HVAC systems that qualify, and the Energy Efficiency Credits blog is an FAQ resource rich in detail and explanation.
- For windows, doors, and skylights, the standards are fairly straightforward, and are available here at the Energy Star website.
We've written about the magic of spray foam - an insulating and air sealing material that's one of the highest-ROI products for improving the energy efficiency of your home, and it qualifies for the tax credit for insulation. More details about applicable insulation is available on Energy Star.
When filing your taxes, you'll need to fill out Form 5695 (pdf). While this year's form is not yet available, the 2008 form (accessible via the link above) will give you an idea of what it entails. When the 2009 form does come out, it will be accessible on the IRS website here.
For further information, the IRS also has a guide to energy tax credits in the stimulus bill here, and the Journal of Accountancy has an article about clean energy incentives in the stimulus package beyond the energy efficiency tax credit - for those of our readers eager to go above and beyond.
So there you go, it's all at your fingertips. Go ahead. Take advantage of the stimulus bill's economic incentives for energy efficiency today - you'll be happy you did when the cold weather rolls in, and you'll be ecstatic come tax time.
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