Have you been contemplating some home improvements, such as a solar electric system or replacement windows? Is your water heater due for replacement (average life of 8 years)?
Well, you might want to make your decision and act on it quickly. 2016 is the deadline for the Residential Energy Efficiency Credit (Form 5695, Residential Energy Credits), which reduces your tax bill on a dollar-for-dollar basis (credit) – even better than a deduction!
Alternative energy systems credits can be worth up to 30% of your investment, while up to a 10% credit can be realized on smaller improvements such as qualifying exterior windows/doors (up to $200) and hot water heaters (up to $150) with a $500 lifetime limit on credits for improvements since 2005.
For more information click this link – Energy Tax Credits for Homeowners.