THE RESIDENTIAL ENERGY CREDIT IS BACK FOR 2012 (AND 2013)!

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TheAmerican Taxpayer Relief Act extended the “Nonbusiness Energy Property Credit”for qualified energy efficiency improvements or residential energy propertycosts for your primary principal residence, which had expired on December 31,2011, through 2013, making it retroactive to January 1, 2012.   The credit is 10% of the qualified cost up to a maximum of $500. Some items are limited to a creditof from $50 - $300.  The $500 is a “lifetime” limit. If you claimed over$500 in energy tax credits from 2006 - 2011 you are not eligible for a creditfor 2012.

The credit is available for –
* Biomass Stoves
* Heating Ventilating, Air Conditioning (Advanced Main Air Circulating Fan, AirSource Heat Pumps, Central Air Conditioning, Gas, Propane, or Oil Hot WaterBoiler, and Natural Gas, Propane or Oil Furnace)
* Insulation
* Roofs (Metal and Asphalt)
* Water Heaters (Gas, Propane or Oil Water Heater, and Electric Heat Pump WaterHeater)

* Windows and Doors
There are very specific “energy efficiency” requirements for each of the aboveitems.  Not every new window, door, boiler,furnace, or roofing improvement will qualify.  You can go to the Energy Star website to find out what thespecific qualifications are for individual items. You may have to wait a few days before the above referenced EnergyStar website has been updated for the new extension.  When I checked the site I found the followingmessage - “Updates to informationregarding recent tax credit changes are in process and will be posted herewithin the next 7 business days.”
When giving your tax pro your “stuff” next February or March do not just include a copy ofthe bill for one of the listed items, or a note that you spent $800 for a newhot water heater, and expect him/her to waste his/her valuable time attemptingto determine if the purchase qualifies for the credit. Do the homework and determine if your purchase qualifies beforecontacting your tax pro.  TTFN