How to Get an Energy Tax Credit from Your Whole-House Fan

If you are thinking about installing a whole-house fan in your home, you may be eligible for an federal energy tax credit. You must meet a few requirements to benefit fully from this tax credit. Depending on which state you live in, you could even be eligible for an additional state tax credit.

The Whole-House Fan and the Federal Tax Credit

The federal tax credit guide for consumer energy efficiency mentions that to apply for a tax credit, you must complete the improvement in an existing home, and this home must be your place of residence. The tax credit does not apply to new construction or to a rental property, even if you own it. The total eligible tax credit is 30 percent of the total cost of material and installation, up to $1,500.

How to Apply for the Tax Credit

You need to fill out the IRS Form 5695. Join it with your 2009 tax return in order to receive the proper credit. The credit expires on December 31, 2010. Make sure to keep all receipts of equipment purchases and installation costs. If you are installing a whole-house fan during the year 2010, join the form with your 2010 tax return.

The person in charge of doing your taxes, such as your accountant, should have further details about what kind of home improvement, besides a whole-house fan, can benefit from this tax credit.