Tax Credit For Energy Efficient Appliances
Learn how to obtain tax credit for energy efficient appliances in your home—it will save you money on your tax bill and you could possibly earn a rebate from your state. Buying energy efficient appliances save you money on your electricity or gas bill because they lower the amount of utility you use each month. You need to know how to take advantage of the benefits of owning these appliances and it starts by knowing what appliances you need to purchase.
Things you need to obtain the energy efficient appliances tax credit
- Computer with internet access
- Form 5695
- Energy efficient appliances
- Find out which products are eligible for the energy efficient appliances tax credit. The best way to figure out what type of appliances meet the qualifications for the energy efficient appliances tax credit is to visit the Energy Saves government website. The website has a listing of all the appliances eligible for credit.
- Look for the energy efficient appliance sticker on the appliances you are purchasing at your favorite retailer. Energy efficient appliances usually have a large yellow sticker. Ask the store sales representative if you have any questions regarding the sticker and product.
- Save the receipts for your energy efficient appliances. Make copies of all your receipts as well the Manufacturer Certification Statement so you can have them for your records. You do not have to submit the documents with your tax return, but you will need them if audited.
- Visit the IRS website and review form 5695. The form has two parts and comes with all instructions needed.
- Request your energy efficient appliances tax credit. Do this by filling out IRS form 5695. This form is relatively simple to fill answer. If eligible, you can get up to 30 percent of your energy costs back and up to a maximum of $1,500 for tax year 2010 in non-refundable tax credit. Non-refundable means that if your tax bill is $3,000, you will owe $1,500. If you have no tax liability, you won’t receive money as a refund. If you are subjected to the Alternative Minimum Tax, your credit will be limited.
- Contact your state revenue department to see if you are eligible for the Energy Savings Appliances Rebate. The American Recovery and Reinvestment Act of 2009 granted approximately 300 million dollars to the state and US territories to give rebate for these appliances. Each state guideline varies in regards to the appliances you purchase and the date of purchase.
- The energy efficient appliances credit is allowable only once. If you had credit in 2009, you cannot claim it again.
- You cannot claim the same appliance twice.
- The credit is only valid to your primary residence located in the United States.