Federal tax credits for energy efficiency are back for homeowners. Reinstatement of the popular credits as a little noticed part of the American Relief Act, the last minute legislation that kept America from tumbling over the fiscal cliff at the start of this year. 

The law allows homeowners to claim various tax credits on improvements such as insulation, energy smart windows and high efficiency furnaces. 

And more good news...Congress made those credits retroactive, improvements made in both 2012 and 2013 will qualify.

The program does have a cap of $500 in total credits. That means if you already have claimed $500 in credits after 2006 you are not eligible for more.

Specifically these credits are available:

10% of the cost of insulation materials and systems not including installation

10% of the cost of qualifying exterior doors windows and skylights with a cap of $200 not including installation.

10% of the cost of metal and asphalt roofs designed to keep the building cooler.

$50 for a main air circulating fan in a furnace

$150 for natural gas propane oil furnace or hot water boiler with and AFUE rate of 95% or better.

$300 for an electric heat pump water heater with an energy factor of at least 2.0.

$300 for a highly efficient electric heat pump

$300 for a highly efficient  central air conditioning unit

$300 for a natural gas, propane or oil water heater with an energy factor of at least .82 or a thermal efficiency of at least 90%

$300 for a biomass stove

The improvements must be made on the taxpayers principal residence and must be placed in service by the end of 2013.

To claim the credit you must file Form 5695 with your federal income tax return. The credit will be subtracted from the tax you owe or added to your tax refund.

Before you file you are required to get a manufacturers certification statement, a signed statement from the manufacturer certifying the product qualifies as a tax credit.

Happy tax filing!