TurboTax / Tax Calculators & Tips / All Tax Guides / Tax Deductions and Credits / Video: The 2010 Energy Tax Credit

Video: The 2010 Energy Tax Credit

Updated for Tax Year 2010


OVERVIEW

Note: The content of this video applies only to taxes prepared for 2010. It is included here for reference only.

With the Nonbusiness Energy Property Credit you can take a credit for 30% of what you paid for your insulation, up to $1,500 - as long as the improvement makes your home more energy-efficient.


Note: The content of this video applies only to taxes prepared for 2010. It is included here for reference only.

Question: My husband and I installed insulation in our home this summer. Does it qualify for a home energy credit on our 2010 taxes? 

Narrator: Hi, I’m Tiffany Smith from TurboTax. Yes, insulation does qualify for a home energy credit on your 2010 taxes. Let’s take a look at how you can take advantage of this great tax break.

First, let’s consider what types of homes are eligible. Only your primary residence qualifies—no rental, investment or business properties. But the good news is that in addition to a traditional house, your primary residence can also be a houseboat, mobile home, co-op or condo.

Now let’s talk about the tax credit. It’s called the Nonbusiness Energy Property Credit. You can take a credit for 30% of what you paid for your insulation up to $1,500--as long as the improvement makes your home more energy-efficient.

Since it’s a tax credit, it’s a dollar-for-dollar reduction in your tax bill. If you spent $4,000 on the insulation, that would qualify you for a $1,200 credit. And you’ll lower your energy bills at the same time.   

Have you made any other home improvements this year? You can also take a credit on the cost of storm doors, windows and certain kinds of roofs—any upgrade that adds energy efficiency to your home. The credit also applies to water heaters, biomass stoves, furnaces, hot water boilers—even central air-conditioning. 

But remember, not every home improvement is eligible. And some improvements include installation costs in the amount eligible for the credit while others don’t. Check out the guidelines on the IRS website. And hurry—the credit is only for improvements you make by December 31, 2010. 

Lower energy bills and lower taxes?  That’s a combination you just can’t beat. 

And remember, if you use TurboTax, to calculate the credit we’ll ask some simple questions about the improvements you made to your home, plus look for every credit and deduction you deserve.
 

Get every deduction you deserve

TurboTax Deluxe searches more than 350 tax deductions and credits so you get your maximum refund, guaranteed.

For only $54.99*
Start for Free

Looking for more information?

The above article is intended to provide generalized financial information designed to educate a broad segment of the public; it does not give personalized tax, investment, legal, or other business and professional advice. Before taking any action, you should always seek the assistance of a professional who knows your particular situation for advice on taxes, your investments, the law, or any other business and professional matters that affect you and/or your business.


Security is built into everything we do
Here's how
* Important Offer Details and Disclosures
  • Filing Deadline: IRS filing deadline for tax year 2015 is April 18, 2016 (except for residents of Massachusetts or Maine, where the IRS filing deadline for tax year 2015 is April 19, 2016).
  • Try for Free/Pay When You File: TurboTax online and mobile pricing is based on your tax situation and varies by product. Free 1040EZ/A + Free State offer only available with TurboTax Federal Free Edition; Offer may change or end at any time without notice. Actual prices are determined at the time of print or e-file and are subject to change without notice. Savings and price comparisons based on anticipated price increase expected 3/18/16. Special discount offers may not be valid for mobile in-app purchases.
  • TurboTax CD/Download products: Price includes tax preparation and printing of federal tax returns and free federal e-file of up to 5 federal tax returns. Additional fees apply for efiling state returns. E-file fees do not apply to New York state returns. Savings and price comparison based on anticipated price increase expected 3/18/16. Prices subject to change without notice.
  • Anytime, anywhere: Internet access required; standard message and data rates apply to download and use mobile app.
  • Fastest refund possible: Fastest tax refund with efile and direct deposit; tax refund timeframes will vary.
  • Pay for TurboTax out of your federal refund: A $X.XX Refund Processing Service fee applies to this payment method. Prices are subject to change without notice. This benefit is available with TurboTax Federal products except the TurboTax Home & Business/QuickBooks Self-Employed bundle offers.
  • About our TurboTax Product Experts: Customer service and product support vary by time of year.
  • About our credentialed tax experts: Live tax advice service is available via phone for your toughest tax questions; fees may apply. Service, experience levels, hours of operation and availability vary, and are subject to restriction and change without notice. Not available for TurboTax Business customers.
  • #1 best-selling tax software: Based on aggregated sales data for all tax year 2014 TurboTax products.
  • Most Popular: TurboTax Deluxe is our most popular product among TurboTax Online users with more complex tax situations.