The credits can be claimed for up to ten percent of the cost of appliance or improvement. For home improvement measures, the cap is $500, and for appliances, between $50-$300.
In order to qualify for the tax credit, a homeowner must have installed the equipment or completed the home improvement within the 2012 calendar year. In order to claim the credit, you'll need to fill out the 2012 IRS Form 5695, and submit it with your tax returns by April 15, 2013. You can download Form 5695 at the bottom of this page.
Some of the appliances and home improvement measures that qualify for the credit include:
- High efficiency heating equipment, including a natural gas furnace with an efficiency rating of at least 95% or a natural gas blower with the same rating.
- High efficiency storage or tankless natural gas water heater with an energy factor of 0.82 or higher
- High efficiency air conditioners, heat pumps and advanced main air circulating fans
- home insulation, which also includes weather stripping, caulking and spray foam
- Energy-efficient roofing
- Energy-efficient windows, doors and/or skylights