Question

I have a question about the energy efficiency tax credit. Can I use the energy tax credits to deduct items I purchased to make my home more energy efficient?

Answer

 

The energy efficiency tax credit helps to offset the cost upgrading your home to make it more energy efficient. Using the energy tax credits, you can claim the cost of more energy efficient items you install in your main home to increase your home’s heating and cooling efficiency. You should expect these items to remain in use for at least five years.

These items are eligible for the energy tax credit if you placed them in service in 2015:

  • Insulation material or systems
  • Exterior windows, skylights, or doors
  • Storm windows and storm doors installed over certain types of windows and doors
  • Metal roofs
  • Certain asphalt roofs

You can deduct 10% of the purchase price for each eligible item. However, the credit has a lifetime limit of $500. Also, no more than $200 of the $500 can apply to windows and skylights.

The nonbusiness energy property credit applies to the cost of some materials. You cannot deduct the cost of appliances.

 

Related Topics

Related Resources

Unreimbursed Employee Expenses - Form 2106

Do you have unreimbursed expenses to include on your tax return? Learn how to claim unreimbursed employee expenses with IRS Form 2106.

What Is a CPA or Certified Public Accountant?

What is a CPA, and how can one help you with preparing your taxes? Understand the role of a certified public accountant with the experts at H&R Block.

Student Loan Interest Deduction

Learn how to deduct student loan interest with H&R Block. Get information about qualified education expenses and see if a student loan tax deduction applies to you.

Earned Income Credit

Learn more about earned income credit eligibility and get tax answers at H&R Block.