Comments on: Ask the taxgirl: Energy Efficient Appliances

By: Natural Gas Company

Natural Gas Company — Wed, 29 Dec 2010 00:06:00 +0000

Even though it costs a little more, these energy efficient appliances make up for it in the long run.

By: forex robot

forex robot — Tue, 06 Apr 2010 12:07:08 +0000

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By: Kelly

Kelly — Sun, 14 Mar 2010 13:32:36 +0000

Judy, if it qualifies (check here for more details: http://www.energystar.gov/index.cfm?c=tax_credits.tx_index), you would have through the end of 2010 to count it towards a 2010 tax break. Provisions expire December 31.

By: Judy Borawski

Judy Borawski — Sat, 13 Mar 2010 17:50:58 +0000

If we were to install a tankless water heater would be eligible to a tax deduction say as if when we put in our new windows and how long to we have to have it installed to get the tax break for next year?

By: Kelly

Kelly — Wed, 10 Mar 2010 23:32:18 +0000

Wow, that is confusing!

Okay, here’s the deal (the instructions are not clear). The IRS clearly says “existing homes” here: http://www.irs.gov/newsroom/article/0,,id=206875,00.html

And on the energy web site: http://www.energystar.gov/index.cfm?c=tax_credits.tx_index

The confusion is that the Residential Energy Efficient Property Credit can be taken for new construction. It uses the same tax form but it’s a different credit (see Part II of the form 5695) – it’s for solar & geothermal power, fuel cells and the like. It does apply to new construction.

But the credit for windows and certain appliances that I mentioned in the post? Only existing homes.

By: John

John — Wed, 10 Mar 2010 22:56:26 +0000

I thought new home construction qualifies. Am I reading the instructions wrong? From Form 5695 Instructions, under Who Can Take the Credits:

“You may be able to take the credits if you made energy saving
improvements to your home located in the United States in 2009. For
credit purposes, costs are treated as being paid when the original
installation of the item is completed, or in the case of costs connected
with the construction or reconstruction of your home, when your original
use of the constructed or reconstructed home begins”

http://www.irs.gov/pub/irs-pdf/f5695.pdf