The Energy Tax Credit is part of the Federal Stimulus Tax Credit which was a group of enhancements that were made to the 2008 tax credits for energy-efficient home improvements made from January 2009 to December 2010 (2016 for renewable energy sources). Unfortunately, the tax credit only applies to energy improvements installed in 2009 – anything before then is not applicable.

The tax credit covers up to 30% of the total installed cost, both labor and material for improvements to your home such as stoves and fireplaces. You can use this credit for 2009 and 2010 but the Federal Tax Credit has a lifetime cap of $1,500. Therefore once you reach the $1,500 limit you can no longer apply for the credit.

In order to apply for this energy tax credit make sure to save your receipts and the manufacturer certification for tax record keeping purposes. Improvements made in 2009 will be claimed on your 2009 taxes (filed April 15, 2010) use IRS Tax Form 5695.