Saving Energy also means Save Money on Taxes

      In early January, it has been claimed that Congress had extended a policy of federal tax credits for energy efficiency users. In other words, it means that homeowners can earn as much as $500 per year for investments in energy-saving windows, water heaters, air conditioners, and a variety of other home improvements. "Rest assured, if you're doing something that's uniquely beneficial for the environment, there's likely a tax credit there," says Mark Steber, chief tax officer at Jackson Hewitt Tax Service, a tax-return preparation firm headquartered in Parsippany, New Jersey.
     According to Steber, insulation, windows, and furnaces are known as being the most commonly used home improvement that qualifies for tax credits. Air-conditioning, water heaters and roofing also are accountable for the tax credits. These home improvements must have been made by 2012 but Steber notes that it's possible to amend tax filings as early as 2009 for earlier purchases.
    For simpler items, homeowners are able to receive a tax credit for 10% of the cost up to $500 or a specific amount from $50 to $300. Solar power systems, geothermal pumps, and other more advanced items are eligible for a tax credit of 30% of the cost with no upper limit until December 31, 2016.
    To be applicable for tax credits, homeowners are required to submit a 5695 Form with their 2012 taxes to receive such tax credits. No receipts? "No problem," says Steber. "Credit card statements, bills, and other evidence of the purchase can serve as adequate documentation."