December 31 2013, the Residential Energy Efficiency Tax Credit will expire for the second time. First enacted in 2011 it was renewed to cover 2012 and 2013. Good news is that there is still time to make qualifying improvements to your home before the 31st. If you already made improvements but didn’t realize they were tax deductible, you may be in for an unexpected gift.
- Equipment purchased must be installed to qualify.
- Items that may qualify are: cooling and heating systems, window, insulation, doors, water heaters, skylights and home weatherization.
- Items purchased and installed must be energy efficiency upgrades. Look for Energy Star qualified items.
One drawback is that since this tax credit was put in place January 2011 and then renewed to cover 2012/2013, you can only use the credit once for all the years it was effective. You get 10% back of up to $5,000 spent on qualifying improvements or a cumulative max of $500. If you claimed it in a previous year, you might not be eligible for new purchases.
Check with your tax preparer or review your past tax returns since 2011 to make sure you can qualify. Homeowners with Fairfax homes for sale are making energy efficient upgrades in order to sell their homes. I can help you find homes with energy efficient upgrades already done that will save you money after your purchase.