How to Get a Tax Rebate on Energy Efficient Appliances

Energy efficiency and saving money are top priorities for many homeowners. Thus, when the United States government announced it is continuing its program of offering a tax credit for the purchase of energy efficient appliances, it is only reasonable to want to find out what you need to do to get your portion of this federal largesse. By following a few steps, you should have no problems obtaining your federal tax credit.

Difficulty:

Moderately Easy

Instructions

Things You'll Need

• Form 5695
• Form 1040
• Receipt of purchase for any Energy Star compliant appliance put into service in 2009
• Manufacturer's certification statement

1. File Form 1040 between Jan. 1 and April 15 and claim the energy efficiency tax credit on line 52.

2. File Form 5695 and send it in along with your 2009 Form 1040 before April 15.

3. Keep your purchase receipts and manufacturer's certification statements for all Energy Star compliant appliances put into service in the past year for your records.

Tips & Warnings

• There are a number of limitations on receiving the tax credit. You can get a credit of up to 30 percent of the cost (up to $1,500 for 2009 and 2010) of energy-efficient improvements on existing homes that serve as a primary residence for the credit recipient. These improvements include Energy Star compliant windows, doors, insulation, roofs, HVAC, water heaters and biomass stoves.

• Geothermal heat pumps, solar panels, solar water heaters and small wind energy systems can receive the 30 percent of cost credit with no upper limit through 2016.

• Fuel cell systems can receive a 30 percent of cost credit with a maximum of $500 per one half kW of capacity.

• If your tax records are flagged for an audit, you may be asked to produce the receipts and manufacturer's certification statements. Be sure to store these documents in an easily accessible location for ready retrieval.

References

• Energy Star tax credit primer