Tax Credits for Eligible Energy Saving Products save money with our Your 2015-2016 purchase may be eligible for federal tax credits TAX CREDIT ELIGIBLE PRODUCTS Shop Insulation & Sealing Shop Water Heaters & HVAC OTHER WAYS TO SAVE The Home Depot Credit Card RECEIVE UP TO $500 IN TAX CREDITS* SAVE MONEY & ENERGY WITH TAX CREDIT ELIGIBLE PRODUCTS If you purchase select energy-saving products from 1/2/15 – 12/31/16, you may qualify to receive a federal tax credit.  Eligible products include: Insulation, windows*, doors, skylights, non-solar water heaters, solar energy systems, biomass stoves, air source heat pumps, central AC, boilers, furnaces/fans, and roofs.  The Consolidated Appropriations Act (see PDF), signed in December 2015, extended the expiration date of tax credits for some energy efficiency measures that previously expired at the end of 2014.    *Limit of $200 tax credit for windows. HOW TO QUALIFY FOR THE ENERGY TAX CREDIT

Explore the tax credit eligible products and determine your 2015 - 2016 purchase qualifies for the credit. Visit energystar.gov/taxcredits and consult your Tax Advisor to find out how you may be eligible for a federal tax credit under the "Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010". Purchase select energy-saving products from 1/2/15 - 12/31/16 from The Home Depot. Keep your receipts and print your manufacturer's certification. Tax credits are available at up to$500 maximum per homeowner.Soft Coated Wheaten Terrier For Sale Tx File for tax credit on your qualifying energy efficient home improvements placed in service by 12/31/16. Blue And White Ticking ComforterConsult your Tax Advisor for appropriate forms.Miele Vacuum Cleaners Authorized Dealers

SAVE MONEY ON ENERGY-SAVING PRODUCTS AND REDUCE YOUR ENERGY BILLS Great Stuff Foam Sealant Other Energy Star® Appliances The Home Depot's Home Efficiency Audit is designed to help you find ways to reduce your energy bills, protect the environment and make your home a more comfortable place to live. WaterSense® Labeled High-Efficiency Toilets Heating and Cooling Units Schedule a system tune-up at least twice a year. Call 1-800-HOMEDEPOT for a free in-home consultation. Eco Options® Qualified Dimmers Light Bulb Savings Calculator Energy Star Hybrid Water Heaters Eco Options Gas Tankless Water Heaters Energy Star® Ceiling Fans PURCHASE QUALIFIED ENERGY-SAVING PRODUCTS FROM THE HOME DEPOT AND EARN INCOME TAX CREDITS Qualifying for federal tax credits is easy when you shop at The Home Depot. By purchasing energy efficient Eco Options and Energy Star products, you can reap the benefits by earning an energy tax credit on your next federal income tax return.

It’s a very easy process because we carry many products that qualify, from water heaters and HVAC units to insulation and various sealants.Add insulation to your attic, basement or crawl space and you’ll qualify. Caulk around your doors and windows, and you’ll qualify. Replace old single pane windows with energy efficient replacement windows and you’ll qualify. There are many more home improvement products that qualify for a tax credit. Take stock of your home and see where you can improve energy efficiency and reap the benefits of saving energy and money and gaining federal income tax credits.To see if you qualify for tax credit, consult your tax advisor and visit energystar.gov/taxcredits. Your purchase may qualify under the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010. Consult your tax advisor for the appropriate forms. Find important manufacturer's documents for your tax records. View or download the PDF below.It’s no secret that finishing your basement will increase your home’s value.

What you may not know is the money you spend on this type of so-called capital improvement could also help lower your tax bill when you sell your house.Tax rules let you add capital improvement expenses to the cost basis of your home. Why is that a big deal? Because a higher cost basis lowers the total profit — capital gain, in IRS-speak — you’re required to pay taxes on.The tax break doesn’t come into play for everyone. Most homeowners are exempted from paying taxes on the first $250,000 of profit for single filers ($500,000 for joint filers). If you move frequently, maybe it’s not worth the effort to track capital improvement expenses. But if you plan to live in your house a long time or make lots of upgrades, saving receipts is a smart move.What Counts As a Capital Improvement?Although you may consider all the work you do to your home an improvement, the IRS looks at things differently. A rule of thumb: A capital improvement increases your home’s value, while a non-eligible repair just returns something to its original condition.

According to the IRS, capital improvements have to last for more than one year and add value to your home, prolong its life, or adapt it to new uses.Capital improvements can include everything from a new bathroom or deck to a new water heater or furnace. Page 9 of has a list of eligible improvements.The improvements must still be evident when you sell. So if you put in wall-to-wall carpeting 10 years ago and then replaced it with hardwood floors five years ago, you can’t count the carpeting as a capital improvement. Repairs, like painting your house or fixing sagging gutters, don’t count. The IRS describes repairs as things that are done to maintain a home’s good condition without adding value or prolonging its life.There can be a fine line between a capital improvement and a repair, says Erik Lammert, former tax research specialist at the National Association of Tax Professionals. For instance, if you replace a few shingles on your roof, it’s a repair. If you replace the entire roof, it’s a capital improvement.

Same goes for windows. If you replace a broken window pane, repair. Put in a new window, capital improvement.One exception: If your home is damaged in a fire or natural disaster, everything you do to restore your home to its pre-loss condition counts as a capital improvement.How Capital Improvements Affect Your GainTo figure out how improvements affect your tax bill, you first have to know your cost basis. The cost basis is the amount of money you spent to buy or build your home including all the costs you paid at the closing: fees to lawyers, survey charges, transfer taxes, and home inspection, to name a few. You should be able to find all those costs on the settlement statement you received at your closing.Next, you’ll need to account for any subsequent capital improvements you made to your home. Let’s say you bought your home for $200,000 including all closing costs. That’s the initial cost basis. You then spent $25,000 to remodel your kitchen. Add those together and you get an adjusted cost basis of $225,000.Now, suppose you’ve lived in your home as your main residence for at least two out of the last five years.

Any profit you make on the sale will be taxed as a long-term capital gain. You sell your home for $475,000. That means you have a capital gain of $250,000 (the $475,000 sale price minus the $225,000 cost basis). You’re single, so you get an automatic exemption for the $250,000 profit. Here’s where it gets interesting. Had you not factored in the money you spent on the kitchen remodel, you’d be facing a tax bill for that $25,000 gain that exceeded the automatic exemption. By keeping receipts and adjusting your basis, you’ve saved about $5,000 in taxes based on the  15% tax rate on capital gains. Well worth taking an hour a month to organize your home improvement receipts, don’t you think?Related:Tax and Home Records Checklist: What to Keep and For How LongThe top rate for most homesellers remains 15%. For sellers in the 39.6% income tax bracket, the cap gains rate is 20%.Watch Out for These Basis-BustersSome situations (below) can lower your basis, thus increasing your risk of facing a tax bill when you sell.