How to Claim Your Tax Credit for Energy Efficient Measures like Spray Foam Insulation
Louisiana residents can claim tax credit by ensuring that their homes practice energy-saving measures and maintain energy efficiency all throughout the year. From non-solar water heaters, roofing, to spray foam insulation you’ve installed in 2011, you can reap tax deductions by following these steps.
Here’s how you can collect tax credit for energy efficiency:
1. Go to the IRS website (http://www.irs.gov) and get the appropriate forms for the specific tax year you are filing.
2. Obtain the following forms:
(You can also download further instructions.)
IRS Form 5695, for renewable and efficiency credits. Spray foam insulation treatments fall in this category.
IRS Form 8910, for alternative motor vehicle credits.
IRS Form 8936, for approved plug-in electric motor vehicles.
3. Don’t lose your receipts. Better yet, secure copies of the receipts along with your Manufacturer Certification Statement. You’ll need these documents for filing and to keep for your records.
4. Remember that credits are nonrefundable. Credits are available only when during your tax liability period.
5. Keep in mind that these tax credits can be collected only once. Credit for home energy improvement system like spray foam insulation are limited to the year you installed them. Once you’ve obtained credit for a spray foam insulation installment in 2009, you can’t get additional credit for the same installation on your 2011 taxes.
6. For federal tax credits expiring in December 2011, a $500 lifetime limit is applied. So if you’ve collected $500 or more tax credit from 2006 to 2010, you cannot collect more tax credits.
7. Here are some household energy improvement systems eligible for tax credits through 2011.
Biomass stoves having thermal efficiency rating of 75% tested with lower heating value. You can take credit for installation costs. These stoves use biomass fuel to heat water or homes.
HVAC. This includes central air-conditioning, electric heat pumps, boilers and furnaces and air circulating fans. Heat pumps and central air-conditioning are both qualified for $300 credit. Boilers and furnaces can claim a $150 credit, while air circulating fans can get $50 credit.
Metal roofs and asphalts roofs with Energy Star qualified materials. You can get 10% credit for material costs.
Insulation. This includes spray foam insulation. You can get 10% credit or up to $500. These insulation systems prevent heat loss or air leaks into homes. Insulation must be the main feature. Products under this system must meet the 2009 International Energy Conservation Code and Amendments. Installation and labor costs are not included in the tax credit.
Fuel cells systems. You can get 30% tax credit including installation cost. The system must attain at least 30% efficiency, having a 0.5 kW capacity.
Wind turbines. You should have a nameplate capacity not exceeding 100 kilowatts. Get 30% tax credit without upper limit.
Solar water heating and photovoltaic systems. Get tax credit for 30% of cost. Like wind turbines, no upper limit is given for solar energy systems.
Geothermal heat pump. Get 30% tax credit including installation costs. The pump must be available on second or principal home.
To learn more about other energy saving systems like spray foam insulation that entitles you for tax credits, visit www.ecostarfoam.com. Or call: (504)383-3261.
Tags: air leaks, energy efficiency, Energy Star qualified materials, household energy improvement systems, Manufacturer Certification Statement, photovoltaic systems, Solar water heating, Spray Foam Insulation, Spray foam insulation treatments, tax credits, Wind turbines