Tax Breaks for Home Improvements
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.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
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.
Get Kiplinger Today newsletter — free
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.
As the "Ask Kim" columnist for Kiplinger's Personal Finance, Lankford receives hundreds of personal finance questions from readers every month. She is the author of Rescue Your Financial Life (McGraw-Hill, 2003), The Insurance Maze: How You Can Save Money on Insurance -- and Still Get the Coverage You Need (Kaplan, 2006), Kiplinger's Ask Kim for Money Smart Solutions (Kaplan, 2007) and The Kiplinger/BBB Personal Finance Guide for Military Families. She is frequently featured as a financial expert on television and radio, including NBC's Today Show, CNN, CNBC and National Public Radio.
-
What Is a Qualified Charitable Distribution (QCD)?
Tax Breaks A QCD can lower your tax bill while meeting your charitable giving goals in retirement. Here’s how.
By Kate Schubel Published
-
Embracing Generative AI for Financial Success
Generative AI has the potential to reshape how we approach learning about and managing our personal finances.
By Rod Griffin Published
-
Biden Proposes New Homebuyer Tax Credits
Tax Credits President Biden is calling for new middle-class tax breaks including a mortgage tax credit.
By Kelley R. Taylor Last updated
-
States With the Lowest Property Tax
Property Taxes Homeowners in these states received some of the lowest property tax bills in the U.S. How does yours compare?
By Gabriella Cruz-Martínez Last updated
-
Save More with Tax Credits for Energy-Efficient Home Improvements
Tax Breaks Tax credits for energy-efficient home improvements are extended and expanded because of the Inflation Reduction Act.
By Rocky Mengle Last updated
-
Ten Tax Breaks for Homeowners and Homebuyers
Homeownership Owning (or buying) a home is expensive. But there are some tax breaks for homeowners that can help you recoup some of those costs.
By Rocky Mengle Last updated
-
58-Year-Old Landlord Says Goodbye to Tenants
Tax Breaks How Delaware Statutory Trusts (DSTs) are helping retirees find time and freedom. Here's one couple’s story of gaining their freedom by quitting the landlord biz – without paying a massive tax bill.
By Daniel Goodwin Published
-
Opportunity Zones: Tax Panacea or High-Risk Money Pit?
Tax Breaks The IRS has given savvy real estate investors an intriguing chance to help develop low-income areas without potentially paying any taxes whatsoever on their gains along the way. But it's not for the fainthearted.
By David E. Redding, CTFA, AEP Published
-
Market for Home Solar Systems Heats Up
Tax Breaks With falling costs and hefty tax credits for solar systems, more homeowners are harnessing the sun to save money.
By Patricia Mertz Esswein Published
-
Key Documents You Need to Take With You in an Emergency
real estate As you prepare for Florence or the next big hurricane, make sure you gather financial documents that you'll need if you must evacuate or your home is damaged.
By Kimberly Lankford Published