Energy Tax Credits
An extra $1,500 never hurt anyone! The American Recovery and Reinvestment Act creates energy tax credits in three broad categories; building envelope, HVAC systems and renewable energy.
You can receive a maximum $1,500 in tax credits for 2009 and 2010 combined. The credit can be split between the two years and can be a combination of improvements to items like; roofing, solar energy, wind turbines, Photovoltaics, geothermal heat, water heaters, HVAC systems, insulation and window & door replacements.
Roofing, insulation and windod/door replacements have a 30% of cost credit available for material only; labor costs are excluded. However, the Photovoltaics, Wind Turbines, Solar water heaters, Geothermal heat pumps, water heaters, HVAC and Biomass Stoves are all 30% credit of labor and materials.
Not all replacement materials qualify; a good rule of thumb is to look for ‘Energy Star’ approved items. However each category has critical requirements to qualify, so make sure you double check the criteria before you buy. Anyone selling you the items or contracting for the work should be able to provide you with a copy of the requirements and proof what you are purchasing meets them.
Note that renewable energy credits apply to all homes, including new homes and vacation homes; all other credits apply only to existing homes that are used as a principal residence by the tax payer.
Homeowners wanting to invest in energy improvements before the end of 2010 can recieve up to $1,500 by using the taxpayer 1040 long form (not 1040EZ) and IRS form 5695.
For more specific information on any category or requirement contact us at adelaine@charterinternet.com.
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