Things That Qualify for the Energy Tax Credit

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    Exterior Home Improvements

    • According to the U.S. Department of Energy, "the American Recovery and Reinvestment Act of 2009 extended many consumer tax incentives originally introduced in the Energy Policy Act of 2005." This act offers tax credits for many exterior home improvements that are installed by the end of 2010. Tax credits of up to 30 percent of the cost of roofing, windows, doors and skylights to a maximum of $1,500. You can cite eligible improvements for the credit on your tax return, which is due by April 15 of the following year.

    Interior Home Improvements

    • Tax credits are also available for certain interior home improvements as a result of the American Recovery and Reinvestment Act. The U.S. Department of Energy states that the following improvements are eligible for a 30 percent credit of up to $1,500: insulation, biomass stoves, non-solar water heaters and energy-efficient heating, air conditioning and venting systems. The improvements must have been made to an existing primary residence before the end of the year to be eligible for the tax credit.

    Clean Energy Improvements

    • Certain improvements that generate clean energy are eligible for tax credits until the end of 2016. According to the U.S. Department of Energy, this credit applies to 30 percent of the cost of the improvement with no upper limit. Energy Star states that the credit applies to: geothermal heat pumps, small wind turbines, solar energy systems and fuel cells. Both existing homes and new construction are eligible for the credit.

    Car Tax Credits

    • The U.S. government offers several tax credits for those who purchase energy-efficient vehicles, such as hybrid cars and plug-in electric cars. The Department of Energy states that "the amount of the credit depends on the fuel economy, the weight of the vehicle, and whether the tax credit has been or is being phased out" and that plug-in electric cars are eligible for a credit of up to $7,500.

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