Homeowners who purchased high-efficiency appliances or made energy-efficient home improvements to their homes in 2010 may qualify for federal tax credits, and they should consider the steps needed to apply as they prepare their annual tax returns by April 18.
The tax credits apply toward 30 percent of the cost, up to $1,500, for new appliances and home improvement measures that include:
*High-efficiency heating equipment, including a natural gas furnace with an efficiency rating of at least 95 percent or a natural gas boiler with an efficiency rating of at least 90 percent;
*High-efficiency storage or tankless natural gas water heater with an energy factor of 0.82 or higher;
*Home insulation, which also includes weather-stripping, caulking and spray foam;
*Energy-efficient roofing; and
*Energy-efficient windows, doors and/or skylights.
For products placed in service in 2010, customers will need to file the 2010 IRS Form 5695 and submit it with their 2010 taxes.
On the 1040 form, the residential energy tax credit (from Form 5695) is claimed on line 52.
Residents should save receipts and the manufacturer's certification statement for their records.
Forms and more information on qualifying products and measures can be found at energystar.gov/taxcredits.
Additional tax credits are available on geothermal equipment, small wind turbines and solar energy systems.
To qualify, the homeowner must have installed the equipment or completed the home improvement in 2010 on an existing home that is the customer's principal residence.
New construction and rentals do not qualify for most of the tax credits.
Tax credits have been extended for 2011 but amounts have been reduced for some products or services.
Learn more about the 2011 qualifications at energystar.gov/taxcredits.
Also, Vectren offers residential and small business rebates for high-efficiency natural gas heating equipment, including water heaters, boilers and furnaces.
Learn more about Vectren's energy efficiency program, Conservation Connection, at vectren.com or call (866) 240-8476.