Living Green on the Front Range
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Tax Credits for Energy Efficient Home Improvements |
| Posted by Administrator (admin) on Jun 29 2009 at 1:05 PM |
by Lara Williams, The Green Team Real Estate
If you've been thinking about making energy efficiency improvements to your home, now is the perfect time. If you put in place new efficient windows, doors, insulation, roofs, heating and cooling equipment, or water heaters by December 31, 2009, you could claim a federal tax credit of 30% of the cost, up to a total of $1500.
And, lately some contractors and retailers are even offering specials for large purchase items like windows and doors, offering an additional discount on their products to encourage people to get started.
Make sure you confirm with the retailer, manufacturer or installer before getting started that the products you plan to claim do in fact qualify. Also, the credit applies for installation and product cost on heating and cooling equipment, but only product cost on windows and doors, insulation, and other parts of the building "shell". And, the credit only applies to a taxpayer's primary residence, in the United States.
To claim the credit, you'll need to file IRS form 5695. And don't forget to save your receipts!
So, if you've been holding off on replacing that old, inefficient furnace, or those single pane windows throughout the house, think about the savings you'll begin to recoup and how much more comfortable you could feel by making certain energy efficiency improvements!
And, don't forget that if you are planning to take the leap to greener power and fuel, you can claim a separate federal tax credit of 30% on solar photovoltaic or solar hot water systems, geothermal heat pumps, small wind energy systems and fuel cells. The good news is, this tax credit is good through 2016, and doesn't have a cap on the actual amount you can claim . You're eligible for 30% back on the cost of any of these systems!
For more detailed information on these various tax credits, the Alliance to Save Energy has a good site. Go to: http://ase.org/content/article/detail/2654
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