Don't forget your tax credit for energy efficiency | News
Homeowners who purchased high-efficiency appliances and/or made energy-efficient home improvements to their homes in 2012 may qualify for Federal tax credits, and they should consider the steps needed to apply as they prepare their annual tax returns by April 15, 2013. The tax credits apply toward 10 percent of the cost, up to $500, for home improvement measures or $50 to $300 for new appliances. Measures/appliances include:
- high-efficiency heating equipment, including a natural gas furnace with an efficiency rating of at least 95 percent or a natural gas boiler with an efficiency rating of at least 95 percent;
- high-efficiency storage or tankless natural gas water heater with an energy factor of 0.82 or higher;
- high-efficiency air conditioners, heat pumps and advanced main air circulating fans;
- home insulation, which also includes weather-stripping, caulking and spray foam;
- energy-efficient roofing; and
- energy-efficient windows, doors and/or skylights.
For products placed in service in 2012, customers will need to file the 2012 IRS Form 5695 and submit it with their 2012 taxes. On the 1040 form, the residential energy tax credit (from Form 5695) is claimed on line 52. Residents should save receipts and the Manufacturer's Certification Statement for their records. Forms and more information on qualifying products and measures can be found at www.energystar.gov/taxcredits. Additional tax credits are available on geothermal equipment, small wind turbines and solar energy systems.
To qualify, the homeowner must have installed the equipment or completed the home improvement in 2012. New construction, secondary residences and rentals may not qualify for some of the tax credits. Consult a certified tax professional for more information.
Vectren offers residential and small business rebates for high-efficiency appliances, including natural gas water heaters, boilers and furnaces and electric appliances, including air conditioners and heat pumps. Learn more about Vectren’s energy efficiency program, Conservation Connection, at www.vectren.com or call (866) 240-8476.