Energy Tax Credits 2014 Rewards Homeowners Making Home Energy Improvements
Energy Tax Credits 2014 Are Available For All Individual Tax Brackets
What is an Energy Tax Credit?
If you made energy-efficient home improvements in 2014, you are likely to be eligible for a $500 tax credit on your 2014 Federal Tax Return.
Tax credits are worthwhile because they directly offset the taxes you owe – dollar for dollar in all tax brackets. For example, if your 2014 taxes due are $7,500, a $500 tax credit would reduce that amount to $7,000.
Although the Residential Energy Tax Credit actually ended at the end of 2013, Congress recently renewed it through 2014. That means you may be able to claim the energy tax credit when you file your 2014 federal tax return. At this time, Congress has not extend the tax credit through 2015.
How To Get Your Energy Tax Credits 2014
Under the energy tax credit of 2013, you could get a 10 percent tax credit for making energy efficiency improvements to your principle residence. Good news for a 2014 energy tax credit? Well yes and no.
Unfortunately, the energy tax credit has a lifetime cap as well as caps for some specific items. For example, the window replacement energy tax credit is capped at $200. The energy tax credits 2014 for a new air conditioner are capped at $300.
Lifetime Cap
The big issue on energy tax credits 2014 is that there is a lifetime cap of $500. That means if you followed the energy saving tips in 2013 and claimed home energy improvements on your 2013 tax return, you may not have any additional credits left for 2014. If you took the tax credit in prior years, you must subtract the prior years tax credits you claimed from $500 lifetime cap. For example, if you took $350 in 2013, you can only take the remaining $150 in 2014.
Last, but not least, not all of the costs to install your energy-efficiency improvements may be included. For example, the costs to install the windows is included, but cost related to install any insulation around the windows may not be.
What Qualifies For An Energy Tax Credit?
Some of the items promoted as home energy saving tips that are likely to qualify for an energy tax credit:
- Doors And Windows
- Insulation
- HVAC systems And Water Heaters
- Roofs And Skylights
- Biomass stoves
Check the Energy Star website to find out if the specific energy-efficiency home upgrades you made during 2014 will meet the requirements for the energy tax credits 2014.
Also, the tax credit applies only to your principal residence.
Conclusion
As with many energy savings tips, they make sense even if you weren’t getting an energy tax credit. But if you did make some energy savings upgrades to your home in 2014, the energy tax credit is there to help offset some of the costs. Even if only a modest amount. Be sure to check with your accountant or tax preparer to better understand how an energy tax credit may help you.
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