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

How Much Does Marketplace Health Insurance Cost?

If you are under 30 and no longer covered by your parents, consider looking into the cost of a catastrophic health insurance plan. Learn more at H&R Block.

Dependents and IRS Audits

Does claiming multiple dependents increase your chances for an IRS audit? Learn how dependents affect your tax return.

Paycheck Taxes – Federal Withholdings, State Withholdings, Social Security and More!

Learn more about the different taxes on your paycheck including federal, state, social security and medicare withholding with the experts at H&R Block.

Unreimbursed Employee Expenses - Form 2106

Do you have unreimbursed expenses to include on your tax return? Learn how tax reform has changed the rules for unreimbursed employee expenses.