If you have created several home improvements that are energy efficient, you may reduce your income taxes by taking advantage of the federal energy tax credits. Such credits are only available to everyone who buy qualified insulating building items or energy-efficient heating as well as cooling appliances. You may claim tax credits via installing some alternative energy sources like small wind turbines and solar panel systems. These items must be installed within the year when you will claim the tax credits and they must meet the guidelines of the federal state for you to be qualified.
If you do not know where to start when obtaining energy tax credits for your home improvements, there are various ways you can consider. The first thing that you should do is to make a research about the manufacturer’s credit certification statement that come with items. Various manufactures may post on this statement over the internet with these items. If these are purchased via a contractor who is also the one who installed them, you will need to contact your contractor for the certifications. While you don’t have to include the certifications or copies along with the tax returns, you should keep such things for record purposes.
Another thing that you must do is to fill out everything on the Form 5695. You should place the cost of any items qualified. The total credit of the items you purchased will be 30 percent of the costs. This also includes installation. Once you have placed the cost of the items, the next thing you must do is to fill out the form’s part 2. Then, combine the credits of the first and second part of the form in order for you to know the total of energy credits.
There are also other forms that you must fill out. See to it to give factual information in order for you to get the energy tax credits for your home improvements.If you have other issues on how you can get energy tax credits for your home improvement, you don’t have to worry about anything as you may consult a tax advisor. However, make sure that your chosen tax advisor is knowledgeable about energy tax credits in order for you to get results in no time. If you don’t have clues about the best tax advisor in your local area, you can always ask for suggestions or recommendations from your friends and family who have already made transaction with a tax advisor about tax credits.
