Tax Credits For Energy Efficiency

To use tax credits for energy efficiency products, you should be aware of the details. Fuel cells (residential fuel cell and mictroturnbine systems; up to $500 per .5 kW of power capacity), geothermal heat pumps, small wind turbines (residential), and solar energy systems are eligible for 30 percent of the cost with no upper limit (except for note regarding first entry). Other products (stoves, heating, insultation, roofs, windows) are eligible for ten percent of cost up to $500. You can learn more from the included link. Follow these steps to apply the federal tax credits for energy efficiency.

In order to claim tax credits for energy efficiency, you will need:

• Receipts
• Manufacturer's certification support form
• Form 5695 with your taxes (by April 15, 2012)

1. Ensure that your product is covered. The products previously mentioned were only a brief overview. Go to the Energy Star website from the government, which is listed below. You will want to make sure that any products you purchase for these credits are applicable.
2. Save documents from the energy-efficient products. You will need copies of your receipt(s) to receive tax credits. In addition, you will need a manufacturer's certification support, which is basically a statement from the manufacturer supporting the product for the tax credit. Keep a copy of this document; check the manufacturer's website or call them to locate the statement.
3. Submit Form 5695 with your taxes. Form 5695 is the correct form when it comes time to filing your taxes. This will ensure that you can receive the tax credits for your purchase. On the 1040 form, the tax credit from Form 5695 is claimed on line 52.