As defined by the Internal Revenue Service, the optional standard mileage rate for 2012 is 55.5 cents per mile. The rate is defined as optional because a business or taxpayer might, instead, use the actual cost of using and maintaining a vehicle for business, medical, moving or charitable purposes.
Taxpayers typically fill out Form 1040 when they want to deduct various items from their taxes. In this case, when you want to deduct energy-efficient appliances from your taxes, on line 52 of the 1040, you can claim or enter the amount of deduction taken from Form 5695.ill out Form 5695, which is called the Residential Energy Efficient Property Credit. In order to claim an appliance for a deduction in 2011, for example, the product must have been âplaced in serviceâ and used in 2011.
If a project doesn't reduce energy costs enough to qualify for that deduction, there are deductions of up to $0.60 per square foot each for lighting, HVAC and the building envelope. Government buildings, which don't pay taxes, may transfer tax deductions to project designers. To qualify for a deduction, an HVAC project must reduce energy costs at least 16.67 percent below the costs for a building designed to meet ASHRAE 90.1-2001. The project must use energy modeling to show the energy cost savings.