How to Get an Energy Tax Credit for Replacement Windows on an Income Property
If you recently installed energy-efficient windows, you might qualify for an energy tax credit. The American Recovery and Reinvestment Act of 2009, which expands previous tax benefits detailed in the Energy Policy Act of 2005, allows a tax credit up to $1,500 for homeowners who make energy-efficient improvements to their home. The credit only applies if the home is your principal residence, so to get the tax credit, you must reside in your income property.
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Instructions
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If you live in your income property, contact an accountant or the IRS to determine if your income property can be considered your principal residence.
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Visit IRS.gov or EnergyStar.gov for a list of energy-efficient improvements that qualify for a tax credit. An Energy Star rating alone isn't a guarantee that your improvement will qualify.
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Keep receipts on each purchase related to the installation of your windows (including labor costs), even after you have filed your taxes. The IRS might later request to see your records.
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Locate and hold on to the manufacturer's certification statement that verifies that your windows qualify as energy efficient. If it was not included with your purchase, find it online. You won't have to attach this with your tax return, however, you are required by the IRS to keep all records related to tax information.
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Download and fill out IRS Form 5695.
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If in doubt, visit an accountant or call the IRS.
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Visit EnergyStar.gov for additional rewards for energy-efficient purchases. You might qualify for sales tax exemptions, credits or rebates.
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Tips & Warnings
Check your current year's tax code and laws for any updates related to energy tax credits.
The IRS is constantly updating the tax code, which could result in you no longer being eligible.
