In 2012, did you install new insulation, energy-efficient exterior windows or doors, a high-efficiency heater or air conditioner or a new roof? If so, you may qualify for a credit for part of these expenses. It is important that your new products meet the requirements of the IRS. Be sure you have the manufacturer’s tax credit certification statement. For instance, roofs must be metal with pigmented coating or asphalt with cooling granules. Windows and doors must meet certain Energy Star guidelines.
The credit is 10% of the cost of qualifying items such as those mentioned above. The maximum credit is $500 with limits on individual items. As an example, if you spent $3,000 on a new qualifying air conditioner and furnace, you would get a $300 credit. One rule to note is if you have taken a credit for energy efficient improvements in the past, you are limited to $500 overall.
Keep your receipts and product documentation for your new items and provide them to your CPA for consideration. If you have any questions you can reach us at 620-431-7000.