If you installed new windows or doors or made other qualifying improvements in 2012, you may be eligible for a tax credit. Or, you can make improvements this year.
The fiscal cliff legislation, which Congress passed on New Year’s Day, revived the tax credit for energy-efficiency improvements for both 2012 and 2013. If you made any eligible improvements in 2012 -- after the credit expired -- dig up the receipts before you file your taxes for the year because you may get a tax break after all. These new rules should also be kept in mind when planning home improvements for 2013.
You can receive up to $500 in total tax credits for eligible home improvements you've made since 2006 (including a $200 limit for windows). If you claimed the full credit for home improvements since then, you won’t be able to take the break again.
If you are eligible, the tax break applies to 10% of the purchase price (not installation costs) of certain insulation materials, energy-efficient windows, external doors and skylights, and metal roofs with pigmented coating or asphalt roofs with cooling granules that meet Energy Star requirements (see the Environmental Protection Agency’s Energy Star website for details).
You can count both materials and labor costs for certain central air conditioners, biomass stoves, electric heat pumps or electric heat pump water heaters that meet specific energy-efficient guidelines -- up to a maximum of $300 for each. You can count up to $150 for an eligible natural gas, propane or oil furnace or hot water boiler. (Adopted From http://money.msn.com/tax-tips/post.aspx?post=8cd88651-dc7f-485d-b8cf-a071239aa8dd)
