Video:What Is the Energy Tax Credit?

Transcript:What Is the Energy Tax Credit?

Hi. I'm Debbie Anderson for About.com.

Tax Credit

Come tax season, many of the things you do throughout the year could qualify you for an energy tax credit, and although you should always consult your CPA before taking the Energy Tax Credit, today we're going to cover a few things you need to know before claiming this tax credit on your taxes!

Taking Advantage of the Energy Tax Credit

A few ways you can take advantage of this credit is by first purchasing and installing a qualified energy-efficient central air conditioning and heating unit to replace your old units that can use up a lot of energy during high use seasons.

Another Way to Take Advantage of the Energy Tax Credit

Another great way to take advantage of the Energy Tax credit is by replacing old drafty exterior windows and doors with qualified exterior doors and windows to improve energy efficiency in the home.

And a third common way is by, replacing that old hot water boiler with a new qualified hot water boiler which can also help you toward becoming qualified to take advantage of the Energy Tax Credit come tax season.

Finally, as with any home improvements that you do, you want to make sure that you keep receipts before claiming the energy tax credit on your tax return.

Before claiming any home improvements on your itemized tax return for the Energy Tax Credit, find out if your home improvements qualify for the Energy Tax Credit by reviewing IRS Form 5695 and the instructions for this tax credit at the IRS.gov website.

With these few added tips, the energy tax credit is another possible way to help you better understand your taxes this tax season.

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