ASK KIM


Tax Breaks for Home Improvements

Kimberly Lankford

You might be able to write off some of the cost of installing energy-efficient windows or other fixtures.



Can I still get a tax credit for installing energy-efficient windows?

You still can take a tax break for installing energy-efficient windows, but you need to act quickly: The windows must be installed by December 31, 2007, to qualify for the credit.

You can get tax breaks for a variety of home improvements. You can take a tax credit for 10% of the cost, up to $500, for installing energy-efficient windows, doors, skylights, insulation and a metal roof coated with heat-reducing pigments (only $200 of the credit can be for replacement windows). You can receive a credit for installing certain efficient hot water heaters and central air conditioning systems, too.

For more information about which home improvements qualify for the tax break, see EnergyTaxIncentives.org and IRS Form 5695, which you'll need to submit when you file your taxes.

Also see Your Energy Crisis Solved for more ideas about saving energy on your home.

Got a question? Ask Kim at askkim@kiplinger.com.




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