What are the facts about the Non-businessEnergyProperty
Thinking about making some energy saving
improvements to your home this summer? Taking some energy saving
steps now may lead to bigger tax savings next year. The
Nonbusiness Energy Property Credit, a tax credit for making
energy efficient improvements to homes was increased as part of
Recovery and Reinvestment Act of 2009.
Here are seven things the IRS wants you to know about the
Nonbusiness Energy Property Credit:
The new law increases thecredit
percent of the cost of all qualifying improvements and
$1,500 claimed for 2009 and 2010 combined.
The credit applies to improvements such as adding
insulation, energy-efficient exterior windows and
energy-efficient heating and air conditioning systems.
To qualify as “energy efficient” for purposes of this tax
credit, products generally must meet higher standards than
the standards for the credit that was available in 2007.
Manufacturers must certify that their products meet new
standards and they must provide a written statement to the
taxpayer such as with the packaging of the product or in a
printable format on the manufacturers’ Website.
Qualifying improvements must be placed into service after
December 31, 2008, and before January 1, 2011.
The improvements must be made to the taxpayer’s principal
residence located in the United States.
To claim the credit, attach Form 5695, Residential Energy
Credits to either the 2009 or 2010 tax return. Taxpayers
must claim the credit on the tax return for the year that
the improvements are made.
Homeowners who have been considering someenergy
efficient home improvementsmay
get them bigger tax savings next year.
For more information on this and other key tax provisions of the
Recovery Act, visit