Time Is Running Out on Energy-Efficient Home Improvement Tax Credits
Congress extended the deadline to December 31, 2013, for many energy-efficient improvements.

Can I still get a tax credit for home improvements?
Yes, but most of them are about to expire (again). Last year, Congress extended the tax credit for many energy-efficient home improvements through 2013. You can receive up to $500 in total tax credits for eligible home improvements you’ve made since 2006. If you haven’t already claimed a credit of $500 or more for eligible home improvements, then you may be able to take the break before the end of the year. The improvements must be to your principal residence.
The size of the credit depends on the type of improvement. The tax break applies to 10% of the purchase price (not installation costs) of certain insulation materials, energy-efficient windows ($200 limit for windows), external doors and skylights, metal roofs with pigmented coating, and asphalt roofs with cooling granules that meet certain Energy Star requirements.

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.
You can count both materials and labor costs for certain central air conditioners, biomass stoves, electric heat pumps and electric heat pump water heaters that meet specific energy-efficient guidelines -- up to a maximum of $300 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 U.S. Environmental Protection Agency’s tax breaks site, the Alliance to Save Energy tax credit page and the Tax Incentives Assistance Project for more information. Keep your receipts and the manufacturer’s certification of eligibility for your records.
Some alternative-energy improvements qualify for larger tax credits with a later deadline. 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. You must make these improvements by December 31, 2016, and they aren’t subject to the $500 limit. See the Energy Star tax credit Web site for details on these credits. You can claim these credits by filing IRS Form 5695, “Residential Energy Credits,” which also includes more details about these credits.
If you don’t qualify for the federal incentives, see if you can get any state tax breaks for energy-efficient home improvements. For links to information about the 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.
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

As the "Ask Kim" columnist for Kiplinger's Personal Finance, Lankford receives hundreds of personal finance questions from readers every month. She is the author of Rescue Your Financial Life (McGraw-Hill, 2003), The Insurance Maze: How You Can Save Money on Insurance -- and Still Get the Coverage You Need (Kaplan, 2006), Kiplinger's Ask Kim for Money Smart Solutions (Kaplan, 2007) and The Kiplinger/BBB Personal Finance Guide for Military Families. She is frequently featured as a financial expert on television and radio, including NBC's Today Show, CNN, CNBC and National Public Radio.
-
Here's Why Walmart Deals are Better Than Amazon Prime Day
With sales for Walmart Deals and Amazon Prime Day running comparable on price, one factor separates them.
-
How to Get Rid of the Things Your Kids Don't Want While Downsizing
Whether moving by necessity or choice, downsizing means deciding what to do with your stuff. Here's what to do if the kids and grandkids don't want it all.
-
Elon Musk and Most Taxpayers Don't Like What's in Trump's 'Big Beautiful Bill'
Tax Policy President Trump is betting big on his newest tax cuts, signed into law on July 4. But not everyone is on board.
-
2025 SALT Cap Could Hurt Top 'Hidden Home Cost'
Tax Deductions The GOP tax bill could make hidden homeowner costs worse for you. Here’s how.
-
No Social Security Tax Changes in Trump’s 'Big Bill'? What Retirees Need to Know
Tax Policy Eliminating taxes on Social Security benefits is missing from President Trump’s tax overhaul. Here’s why and what an alternative offering could mean for retirement taxes.
-
Five Surprising GOP Senate Bill Tax Changes to Know
Tax Policy Senate Republicans proposed tax changes for Trump’s ‘one big, beautiful bill.” Some provisions have stirred debate.
-
$6,000 'Bonus' Tax Deduction Approved for Those Age 65 and Older
Tax Reform Trump’s ‘big bill’ contains a larger 2025 bonus tax deduction for older adults. How will it work?
-
Don't Miss These Four Tax Breaks for Americans Living Abroad in 2025
International Tax U.S. expats can reduce their tax burden by taking advantage of a handful of tax credits and deductions.
-
Summer Backyard Ideas With Added Tax Benefits for 2025
Tax Tips Find out how these summer 2025 home projects can help you save on taxes next year.
-
Why Your California Utility Bill Could Increase Under Trump's Tax Plan
State Tax Energy bills in the Golden State may shock you if Republican lawmakers in Congress remove certain energy tax credits through Trump's 'big, beautiful bill.'