Did the fiscal cliff law extend the tax credits for energy-efficient home improvements for 2013?
Yes it did. The law, which Congress passed on New Year’s Day, revived the tax credit for both 2012 and 2013. If you made any eligible improvements in 2012 -- after the credit expired -- dig up the receipts before you file your taxes for the year because you may get a tax break after all. And keep these rules in mind when planning home improvements for 2013:
You can receive up to $500 in total tax credits for eligible home improvements you’ve made since 2006 (including a $200 limit for windows). If you claimed the full credit for home improvements since then, you won’t be able to take the break again.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
If you are eligible, the tax break applies to 10% of the purchase price (not installation costs) of certain insulation materials, energy-efficient windows, external doors and skylights, and metal roofs with pigmented coating or asphalt roofs with cooling granules that meet Energy Star requirements (see the Environmental Protection Agency’s Energy Star Web site for details). You can count both materials and labor costs for certain central air conditioners, biomass stoves, electric heat pumps or electric heat pump water heaters that meet specific energy-efficient guidelines -- up to a maximum of $300 for each. You can count up to $150 for an eligible natural gas, propane or oil furnace or hot water boiler.
The items must meet specific energy-efficient requirements to qualify. See the Alliance to Save Energy tax credit page and the Tax Incentives Assistance Project for details. Keep your receipts and manufacturer’s certification of eligibility.
Some alternative-energy improvements qualify for larger tax credits. For improvements made by December 31, 2016, you can take a credit worth 30% of the cost of buying and installing certain alternative energy equipment, such as geothermal heat pumps, solar water heaters, solar panels, fuel cells and small wind-energy systems.
For more information about these tax breaks, see IRS Form 5695 Residential Energy Credits.
If you don’t qualify for the federal incentives, see if you can get any state breaks. For links to details about programs in each state, see the American Council for an Energy-Efficient Economy site. For a list of several state and utility programs, see the Tax Incentives Assistance Project.
-
Social Security Turns 90 — Five Important Things to KnowSocial Security has become a cornerstone of the American retirement system and works to keep over 16 million retirees above the poverty line. Here are five key facts about the program as it turns 90.
-
Walmart to Pay $5.6 Million for Overcharging ShoppersThe retail giant's latest settlement highlights ongoing pricing accuracy issues and what consumers should know before their next shopping trip.
-
How the 2025 Child Tax Credit Rules Impact Single ParentsTax Credits New changes to family tax credits, like the Child Tax Credit, will impact the eligibility of some households.
-
How Your 2025 Summer Wedding Could Save You Money on TaxesTax Breaks There are some wedding expenses that are tax-deductible, and you don’t want to miss out on savings.
-
Retirees Should Watch These Four Key Tax Changes in 2025Tax Changes This year brings key tax changes that could affect your retirement taxes and income.
-
Tariff Stimulus Checks Coming? New Proposal Seeks Tax Rebates for US WorkersTax Breaks A new GOP bill proposes to send $600 in tariff rebate checks to eligible taxpayers. Is there a catch?
-
Biggest Winners and Losers in Trump's New Tax PlanTax Law Trump’s mega tax overhaul, known as the ‘One Big Beautiful Bill,’ has distinct winners and losers. Which group do you fall into?
-
Five Ways Trump’s 2025 Tax Bill Could Boost Your Tax Refund (or Shrink It)Tax Refunds The tax code is changing again, and if you’re filing for 2025, Trump’s ‘big beautiful’ bill could mean a bigger refund, a smaller one or something in between next year. Here are five ways the new law could impact your bottom line.
-
New SALT Deduction Could Put Thousands Back in California Homeowners’ PocketsTax Breaks The federal state and local sales tax (SALT) deduction cap is higher this year, and could translate into bigger savings for Golden State homeowners.
-
Money for Your Kids? Three Ways Trump's ‘Big Beautiful Bill’ Impacts Your Child's FinancesTax Tips The Trump tax bill could help your child with future education and homebuying costs. Here’s how.
