Tax Calculators & Tips / Tax Deductions and Credits / Are Energy Efficient Appliances Tax Deductible? In past years, as an incentive to conserve energy at home, the federal government has offered tax credits to homeowners who purchase energy-efficient appliances. The program is known as Energy Star. However, beginning in 2012, the program has mostly expired except for credits geared at the production of residential energy. Learn more about this program and how you may benefit from it. Since the 1970s, the government has been encouraging Americans to conserve energy, and for good reason. Conserving energy can help reduce our country’s dependence on foreign oil, helps the environment and can save us money. As an incentive to conserve energy at home, the federal government offers tax credits to homeowners who purchase energy-saving improvements. The program is known as Energy Star. The Energy Star program The EPA and the Department of Energy have worked together on Energy Star since 1996, in order to promote home and business energy efficiency.

According to Energy Star's website, the use of Energy Star approved products -- windows, heating and air-conditioning systems and insulation, for instance -- saved homeowners billions of dollars since the inception of the program and avoided greenhouse gas emissions equivalent to millions of cars.How To Clean Air Jet Tub Equipment that qualifies for energy tax creditsBest Smoke Odor Air Purifier Installing alternative energy equipment in your home such as solar panels and geothermal heat pumps, can qualify you for a credit equal to 30% of your total cost. Rug Pads For Laminate FlooringThe credit is available through the end of 2019. After that, the percentage steps down each year and then stops at the end of 2021. Qualifying equipment includes solar-powered units that generate electricity, energy-producing wind fans and geothermal heat pumps.

The credit is only available for improvements you make to your primary home. If you are adding solar panels to your summer house, you won’t get a tax break for it. Filing for energy tax credits on your tax return To claim the credit, you'll need IRS Form 5695. Work out the credit amount on that form then enter it on your 1040. You should keep your receipt for the appliance as well as the Manufacturer's Certification Statement, so you can prove your claim if the IRS ever conducts an audit. Just remember, you can reduce your taxes with the energy tax credit, but you can't get money back. In other words, if you owe $2,200 and your credit is $3,400, you can only claim $2,200 this year. However, with the credit involving turbines and heat pumps, the remaining $1,200 could be carried over to the following year. When you use TurboTax to prepare your taxes, we'll ask simple questions to see which credits you can claim, and we'll fill in all the right forms for you.HE washers use much less detergent to clean your clothes.

The purchase of a high-efficiency washer and dryer is one way to reduce both water and energy consumption, allowing you to pat yourself on the back for taking a greener approach to laundry. However, if you're hoping your new appliances will save you a little extra green in the form of tax credits, don't start itemizing your deductions just yet. While traditional energy-related savings are not available, there are a couple of other options at tax time. No Deduction Even though your HE washer and dryer may be branded with the Energy Star logo, your appliances don't qualify for federal tax credits. While homeowners can receive a tax break with certain qualified home improvements, the current tax credit, which expires on Dec. 31, 2016, provides for up to 30 percent of the cost of geothermal heat pumps, small wind residential turbines and solar energy systems only. Home appliances, however, do not qualify. Business Use Depreciation Deduction You may be eligible for a tax deduction if you have installed an HE washer and dryer in a rental property that you own.

The property must be income-producing and the HE washer and dryer must have a determinable life span. Similarly, if you use an HE washer and dryer in your daily business; for instance, you own a bed and breakfast and you must wash linens regularly, or you own a kennel and must keep animal bedding clean, you can itemize your appliance as a business expense. The basis of the washer and dryer's cost includes the amount you put down in cash, or the amount of debt you owe on the appliances. You may also include delivery charges, installation and sales tax, if allowed in your state. According to the Internal Revenue Service, appliances can generally be depreciated over a 5-year period. You must file Form 1040 and attach Schedule E, Supplemental Income and Loss. Charitable Deduction If you replace your existing HE washer and dryer with a new model, and donate your used appliances to a qualified charity, you can deduct the fair market value of the washer and dryer. , washers and dryers make good donations, as long as they are in good working condition with no parts missing.

Get a receipt when you donate your appliances; you'll need to prove your deduction to the IRS if you get audited. Casualties or Loss If someone is brazen enough to steal your HE washer and dryer from your home, or if you lose it to fire or other type of casualty, you can claim your loss on your tax return on Form 4684, Casualty and Theft Losses. Only losses in excess of 10 percent of your adjusted gross income are allowable. Casualty losses are carried on to Schedule A from IRS Form 4864. References Energy Star: Federal Tax Credits for Consumer Energy EfficiencyEnergy Star: Clothes WashersIRS: Depreciation of Rental PropertyDonationTown: Donate Appliances to Charity Photo Credits Jupiterimages/Pixland/Getty ImagesAs part of the 2009 American Recovery and Reinvestment Act (ARRA), the Internal Revenue Service (IRS) provided energy tax credits to taxpayers who made energy-efficient improvements to their homes or purchased an electric vehicle in previous years. The American Taxpayer Relief Act of 2012 included extensions for many energy tax credits that were scheduled to expire in 2011.

The energy tax credit is exactly that: a credit. This cannot be used to lower a tax bill below zero. The amount of credit differs depending on the type of item or improvement. Additionally, some credits include installation costs. The U.S. Department of Energy (DOE) lists the rules for permissible credits, the maximum amounts of credit and the standards for these items on its website. In 2009 and 2010, the IRS permitted a $1,500 lifetime credit maximum for home improvements. For 2012 and 2013, this amount has been reduced to $500. These energy credits are limited to improvements for the primary residence; improvements on rental homes, vacation property, or second homes are not included in this type of credit. Taxpayers can claim 10% of the improvement's cost, up to a maximum of $500. Installation costs for roofs, windows and doors are not included. Installation costs for insulation is similarly not included unless it was self-installed by the homeowner. Homeowners are not currently able to get federal tax credits for energy-efficient appliances.

Items that you cannot get energy tax credit for include: Improvements to rental properties are also excluded. Credits for five improvements can be taken on new or existing homes through 2016; the credits need to be taken the year the improvement was installed. These items are eligible for 30% of their cost including installation - no matter the value - with no maximum to the credit amount. This credit can be used from objects installed in second or vacation homes. The one exception is that credit for fuel cells is only available for primary homes. Taxpayers claiming fuel cells on their return receive 30% of their cost, up to a maximum of $500 for every 5 kW of power the cell produces. There is no income limit for these credits, enabling taxpayers with high incomes to claim them. Similarly, taxpayers can use these credits to reduce their amount of alternative minimum tax, the extra tax levied in addition to the tax on many individuals' incomes. As a new change, builders can get credit for new homes that reduce energy use by 50% relative to the IECC building code.

The builders may be eligible for a $2000 credit for building energy-efficient homes - either site-built homes or manufactured homes. A $1000 credit is also available to builders who build manufactured homes that save 30% more energy or that qualify for the federal Energy Star Homes program. These credits are available for homes that were placed in service from January 1, 2006 through December 31, 2013. Manufacturers are also eligible for credits for building qualifying models of dishwashers, clothes washers, and refrigerators. These credits are available for appliances built between January 1, 2012 and December 31, 2013. People who purchase hybrid-electric, lean-burn (largely diesel), and fuel cell vehicles may be eligible for energy tax credits. Some of the available vehicle credits cannot be combined, while others can be simultaneously claimed. The DOE lists minimum weights and combustion system requirements on its website. This credit is only available for new cars purchased in or after 2010, with at least four wheels.

Taxpayers can claim a minimum of $2,500 plus $417 for a 5 kilowatt hour battery and $417 for each additional kilowatt hour up to a maximum of $7,500 in credit. This credit will phase out once the car manufacturer sells more than 200,000 of the qualifying vehicles after December 31, 2009. This credit originally applied to new or used low-speed vehicles with two or three wheels purchased after February 17, 2009 but before January 1, 2012; however, this credit has been extended through 2012 and 2013. Taxpayers receive 10% of the cost up to a maximum of $2,500. This credit cannot be claimed with the Plug-In Electric Drive Vehicle Credit. If you have made energy-efficient improvements to your home, purchased an electric vehicle or converted your car to an electric vehicle, you can claim credit on your tax return. To do so, file the IRS form 5695 with your tax return. Energy efficiency can have a long term effect on your pocketbook. The tax credits are one way, and lowered energy bills is another.