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How replacing your windows, doors and roof just became more affordable.


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Drafty windows? Tired, worn looking front door? Looking to create better access and a view of your backyard with patio doors? Is your roof past its prime? Good news! Now may be the time to do those home improvement projects that will save money on your heating and cooling bills while also earning yourself a tax credit. The Fed has extended the Federal Energy Tax Credits to continue retroactively from 1/1/2017 to 12/31/2018 for qualifying energy efficient home improvement products.

The Bipartisan Budget Act of 2018 (BBA) reinstated the nonbusiness energy property credit for 2017, and it reinstated the residential energy efficient property credit for qualified small wind energy property costs, qualified geothermal heat pump property costs, and qualified fuel cell property costs to the end of 2021.

You may claim these credits on your 2017 tax return if you otherwise meet the criteria. If you have already filed your return, you will need to file an amended return (Form 1040X) to claim these credits.

Is this the year to finally replace your old roof and those drafty doors & windows?

 


What Qualifies and How Much Do I Get in Tax Credits?

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A number of tax credits for residential energy efficiency have been renewed. These tax credits are available for purchases made in 2018, as well as retroactive to purchases made in 2017. ENERGY STAR products eligible for tax credits are independently certified to save energy, save money and protect the environment. Use up to 30% less energy in your home by outfitting it with ENERGY STAR products available across more than 70 categories. *

Tax Credit: 10% of cost up to $500 or a specific amount from $50-$300.

Expires: December 31, 2018

Details: Must be installed in your "principal residence" between January 1, 2017 and December 31, 2018. New construction and rentals do not apply.


Windows, Doors & Skylights

Windows, doors and skylights that earn the ENERGY STAR save energy, improve comfort and help protect the environment.

Tax Credit: 10% of cost (not including installation costs), up to $200 for windows and skylights; up to $500 for doors. (Cumulative maximum tax credits for windows, doors, and skylights for all years combined is $500)

Requirements: Must be ENERGY STAR certified. You do not have to replace all the windows/doors/skylights in your home to qualify. And it doesn't need to be a replacement either - installing a new window or door where there wasn't one previously qualifies.

Timing: Must be installed in your "principal residence" between January 1, 2017 and December 31, 2018.

How to apply: Refer to the IRS Instructions for filing Form 5695 and then you will file Tax Form 5695 with your tax return.


Roofing

This tax credit is for ENERGY STAR certified metal and asphalt roofs with pigmented coatings or cooling granules designed to reduce heat gain.

ENERGY STAR qualified roof products reflect more of the sun's rays. This can lower roof surface temperature by up to 50F, decreasing the amount of heat transferred into a building.

ENERGY STAR qualified roof products can help reduce the amount of air conditioning needed in buildings, and can reduce peak cooling demand by 10-15 percent.

Although there are inherent benefits in the use of reflective roofing, before selecting a roofing product based on expected energy savings consumers should explore the expected calculated results that can be found on the Department of Energy's "Roof Savings Calculator" website at www.roofcalc.com (link is external). Please remember the Energy Savings that can be achieved with reflective roofing is highly dependent on facility design, insulation used, climatic conditions, building location, and building envelope efficiency.

Tax Credit: 10% of cost.

Note: There is a total combined credit limit of $500 for all purchases/improvements for all years since 2005. For purposes of figuring the roof credit, do not include labor costs.

Requirements: Must be ENERGY STAR certified.
"Metal roofs with appropriate pigmented coatings" and "asphalt roofs with appropriate cooling granules" that also meet ENERGY STAR requirements are eligible. Roof coatings are NOT eligible for the tax credit. The roofs that are eligible are "reflective roofs." New construction and rentals do not apply.

Timing: Must be installed in your "principal residence" between January 1, 2017 and December 31, 2018.

How to apply: Refer to the IRS Instructions for filing Form 5695 and then you will file Tax Form 5695 with your tax return.


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