Can I claim energy-efficient appliances or energy-saving home improvements?

You can't claim Energy Star appliances or water-saving improvements like low-flow toilets, low-flow shower-heads, or xeriscaping on your federal return. But many state and local governments and utility companies offer incentives or rebates for energy- or water-saving home improvements. An online search will reveal what your state has to offer (for example, you might search for "Arizona toilet rebate" or "California water saving incentives").

Under the Residential Clean Energy Credit, you can get a federal tax credit for installing alternative energy equipment such as:

If you made energy-efficient improvements to your home like energy-saving roofs, windows, skylights, and doors, you may be able to claim the Energy Efficient Home Improvement Credit for 30% of amounts paid for qualified energy efficiency improvements, up to an annual cap of $1,200, or fixed-dollar amounts ranging from $150 to $600 for energy-efficient property, including:

These items have an annual cap of up to $2,000:

How do I enter qualified energy-saving improvements?

Go to the Energy Efficient Home Improvements screen, answer Yes and Continue. Follow the instructions on the next screens.

The first part of the interview covers improvements like doors, windows, furnaces, air conditioning, and heat pumps. If you're looking for other improvements like solar, geothermal, wind, and fuel cell, just keep going—we'll ask you about these soon.

Why's my Home Energy Credit being carried forward to next year?

There are times when you can't take a credit into the current year, including:

If your credit can be carried forward to next year, we'll do that for you.