Things You'll Need:
- Receipts
- Construction material information
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Step 1
Read the guidelines set forth by the IRS. While products such as those that qualify for the Energy Star rating are eligible for the tax credit, they must be installed in their certified climate zones in order to get it. Energy-efficient replacements without the Energy Star rating may be accepted, but the IRS requires extensive documentation before it will authorize the tax credit.
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Step 2
Keep impeccable records. While this is a good idea for filing taxes in general, it is especially important when claiming a tax credit, because you are asking the government to give you money. Keep your receipts and certification of energy efficiency, as well as any other relevant information about the improvements you have made to your home.
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Step 3
Keep up with the most recent changes in tax law. The IRS consistently updates its website with changes and clarifications as to what tax credits you can claim in an energy-efficient home. Make sure that you know the rules.
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Step 4
Research which tax credits will be offered for which energy-efficiency improvements. For example, heating and cooling systems in homes get modest tax credit, while roofs, insulation and windows can come with higher tax credits. New homes can manage to generate substantial tax credits, provided they have heating and cooling systems that are 50 percent more efficient than the guidelines established in the 2004 International Energy Conservation Code, among other requirements.
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Step 5
Consult an accountant to get the maximum amount of credit due. The IRS guidelines can be very difficult to understand, and a certified accountant can translate the tax law into layman's terms, letting you know exactly what records you need to show and what amount of tax credit you can expect to receive. They can also help you properly fill out the form you need to file with your taxes in order to receive the tax credit. You can obtain a copy of this publication, form 5695, on the IRS website (see Resources below).
