By: Donna Fuscaldo
Energy tax credits on select improvements available through the end of tax year 2016.
If you upgraded one or more of the following systems last year, you may be eligible to take a tax credit -- up to $500 -- on your return.
- Biomass stoves
- Heating, ventilation, air conditioning
- Roofs (metal and asphalt)
- Water heaters (non-solar)
- Windows, doors, and skylights
The energy tax credits are small, but at least a credit is better than a deduction:
- Deductions just reduce your taxable income.
- With a credit, you get a dollar-for-dollar reduction in your tax liability: If you get the $500 credit, you pay $500 less in taxes.