If you made improvements to your home last year such as new windows or doors, you may be surprised to know that you may be able to claim a tax credit based on a percentage of your replacement cost. The Energy star tax credit was created by the American Recovery and Reinvestment act of 2009 and it allows tax payers to claim a credit for up to 30% of the cost of their energy star products. The credit only applies to your product cost and not the labor.


Depending on the type of energy star improvement, there may be a limitation on the amount that you can claim on your tax credit. Some improvements have a $1,500 limit while others have no limit. Items that carry a $1,500 limit are set to expire in 2010 while the energy star products that have no limits do not expire for another six years. Be sure to check the energy star rating on your product before claiming this credit. Your product must meet certain energy efficiency requirements in order to qualify.

Products that qualify for a 30% credit, are set to expire the in 2010, and have a limit of $1,500 are:

-Biomass stoves
-Hvac systems
-Insulation
-Roofs
-Water Heaters
-Windows and doors

Products that qualify for a 30% tax credit, expire in 2016, and do not have a tax credit limit are:

- Geothermal heat pumps
-Small wind turbines
-solar energy systems

For more information on these products and for product details, visit the official energy star website at energystar.gov. Here you will find the complete list of eligible energy star products and the energy star efficiency requirements to qualify for the credit.

Author: Mike Smitt