The IRS's maximum credit available is $500 over the lifetime of the credit period (through 2016). Overall, the credit is 30 percent of the cost of the garage door or any other energy-efficient product you purchase. Installation costs do not apply.
In order to obtain your tax credit, the IRS requires that the insulated garage door have a U-Factor or Solar Heat Gain Coefficient of .30 or lower. A U-Factor is the rating that applies to how much heat escapes through a door or window. The Solar Heat Gain Coefficient (or SHGC) is a figure that represents how much sun comes into your home through the window or door. Some door manufacturers produce insulated garage doors with a lower U-Factor and SHGC than the IRS requires. Check to make sure these manufacturers meet IRS requirements.
An insulated garage must be installed on a garage that already has insulation. Also, it's required that the door has an air infiltration system. Another requirement is that you use the garage door for at least five years. The door must be used in your principal residence; a tax credit isn't possible if the garage door is used on a rental or secondary residence.
Filing for the Credit
All renewable and energy-efficient appliance credits are taken when you fill out IRS form 5695. This form is titled "Residential Energy Credits." In Part I, provide necessary information on all non-business energy property credits. Part II is for credits on residential energy-efficient properties. Attach the 5695 form to your 1040 or 1040-NR form.