{"id":1175,"date":"2013-12-11T09:01:57","date_gmt":"2013-12-11T14:01:57","guid":{"rendered":"http:\/\/keysolutions.us\/blog\/?p=1175"},"modified":"2013-12-11T09:01:57","modified_gmt":"2013-12-11T14:01:57","slug":"energize-your-tax-return-with-residential-non-business-energy-tax-credits","status":"publish","type":"post","link":"https:\/\/keysolutions.us\/blog\/energize-your-tax-return-with-residential-non-business-energy-tax-credits\/","title":{"rendered":"ENERGIZE YOUR TAX RETURN \u2013 WITH RESIDENTIAL & NON-BUSINESS ENERGY TAX CREDITS"},"content":{"rendered":"

ENERGIZE YOUR TAX RETURN \u2013 WITH RESIDENTIAL & NON-BUSINESS ENERGY TAX CREDITS<\/b><\/p>\n

While politicians say that they are energy conscious, the tax credits associated with home improvements comes and goes, the rules change, and the credit is not the easiest to compute because of dollar limitations, percentages of property eligible for the credit, and prior years\u2019 adjustments.<\/p>\n

Working with an experienced tax professional for tax preparation<\/a> and tax planning<\/a> can often result in reducing one\u2019s tax bills as the tax professional is reading and keeping abreast of IRS announcements. In Notice 2013-70 the IRS provided guidance for claiming tax credits for non-business energy property (IRC Sec. 25C) and residential efficient property (IRC Sec. 25D) for the 2013 tax year.<\/p>\n

While the content of this notice is far too broad to cover in this post, we have commented on just a few points of interest. Any person who has installed energy efficient property in 2013 or plans to do so should read this IRS notice which can be found on the IRSs\u2019 website, www.irs.gov<\/a> and then speak with their tax professional for guidance.<\/p>\n

Since not all improvements will qualify for the energy credit, an unscrupulous contractor may mention to the homeowner that the IRS allows energy credits hoping that the homeowner will think that a tax credit is available for the work being done. Unfortunately, not all energy home improvement projects qualify for the IRS tax credit.<\/p>\n

How can the homeowner protect themselves to ensure that they are entitled to the tax credit? The IRS states that taxpayers can usually rely upon the manufacturer\u2019s certification that the property is eligible for the tax credit. Thus, it behooves all taxpayer\u2019s who are making energy efficient improvements to insist upon obtaining<\/span><\/i><\/b> the manufacturer\u2019s certification as part of the contract agreement when having the work done. By obtaining the manufacturer\u2019s certification, the taxpayer has the proper substantiation to prove that the improvement qualifies for the credit.<\/p>\n

The credits are available when the property is installed and paid for and the taxpayer is using the property (is living in the residence). The dollar amount of the credit will be determined by the type of property installed. The IRS\u2019s overall limitations of the amount of the credit that can be claimed may have to be reduced by prior years\u2019 energy credits claimed.<\/p>\n

These tax credits are non-refundable. That means that the taxpayer can only receive a tax benefit by using it to decrease or eliminate a tax liability. A taxpayer will not receive a tax refund for any amount that exceeds the taxpayer\u2019s tax liability for the year.<\/p>\n

There are differences in the treatment of \u00a725C and \u00a725D credits, including . . .<\/p>\n