With rising energy cost, it is now a wise choice to invest in home energy efficiency. As it doesn't just save you energy and money alone, it increases your property’s value and gives you money back in the form of residential energy tax credits for home improvements. Homeowners who are interested in knowing how to take care of the upfront cost with the help of tax breaks on specific home improvement projects will find a new blog post on American Tax Service very resourceful. The post reveals all they need to know about the residential energy tax credits and how they can easily claim it.
According to American Tax Service, there is no better time to consider energy-efficient home improvements than now as most of the energy tax credits decreases in value every year. The Residential Renewable Energy Tax Credits is perhaps one of the most generous energy tax credits and it applies to newly built homes as well as an existing primary or secondary property. Homeowners can claim up to 30% of the overall cost of installing their system including labor cost using this tax credit.
Homeowners who would like to claim the Residential Energy Tax Credit must file Form 5695 with their tax return. They are also expected to provide information regarding the costs of installing their energy-efficient system. The tax credits are nonrefundable, so while it can reduce the tax bill up to zero, it does not offer a tax refund. In addition, the total amount of tax credits can’t exceed the amount of tax owed.
Another energy credit homeowners might also take note of is the non-business energy property tax credit. While this tax credit has expired, there is a possibility it could be renewed by Congress. The American Tax Service recommends using the H&R Block Online Tax to maximize the tax deduction and energy credit that you are eligible for. It offers step by step instruction and ensures that you get the largest refund possible.
For more information about the Residential Energy Credits, please visit, https://americantaxservice.org/home-improvements-qualify-residential-energy-credits/