Are you looking for ways to make your home more energy efficient?
If so, then you get to enjoy some benefits as it can help you save more money on your energy bill every month. Moreover, an energy tax credit can help you save more on your taxes for the year.
If you are not sure how to maximize such benefits, now is the perfect time to see which credits you’re potentially eligible for. If you’re not sure how to use the energy efficient home tax credit you’re entitled to, here are a few tips to help you out.
Determine Eligible Upgrades
When it comes to taking advantage of the Energy Efficient Home Tax Credit, determining which upgrades are eligible for the tax credit is key. Some common eligible upgrades include investments in:
- high-efficiency HVAC systems
- efficient windows
- insulation
- water heaters
- installing solar panels
Consumers should purchase ENERGY STAR®-labeled products to ensure that the product is certified and eligible for the tax credit. Homeowners should keep in mind that the tax credit may not cover the full cost of the upgrade and that only certain items will be covered. Before making any purchases for energy-efficient improvements, research what kind of energy-efficient products are available and whether or not they would qualify for the tax credit.
Keep Receipts and Documentation
To make sure your home energy-saving credit is properly recorded, documentation and receipts should be kept. Documentation includes such things as:
- contractor paperwork
- product labels
- energy calculations
The information provided from this will help verify the eligibility of the product for the credit and its value. Receipts should be kept for all purchases for both products and services, as well as for labor expenses.
Make sure to keep track of the date of purchase, store name, and item purchased. This can help not only prove the eligibility of the products or services purchased but also provide evidence of the cost basis. Any receipts, contracts, and other documents should be kept as long as the taxpayer retains ownership of the property.
Claim the Credit on Your Taxes
The Energy Efficient Home Tax Credit provides homeowners with an opportunity to claim savings in the form of tax credits. Claiming the credit is straightforward and can result in significant annual savings. Homeowners can call their accountants or tax advisor to ensure they receive the maximum tax credit available.
Homeowners should also contact their local utility company to ensure they receive any additional credits or rebates when they install energy-efficient equipment. If you need help from your solar contractor, for example, then go here now to get help with claiming your solar credits.
Learn How to Use the Energy Efficient Home Tax Credit
Claiming the Energy Efficient Home Tax Credit can help save on your taxes and save energy. Whether you are buying or building a new home or installing upgrades in an existing home – take advantage of this great opportunity to save. Invest in your home and your future today!
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