Sep 25 2009
Save Taxes AND Save Energy Costs
When you’re replacing appliances, making repairs or remodeling, you may be able to recoup part of the cost if your improvements are energy-efficient. A 30% tax credit is available with a limit of $1,500 for all combined credits. From Angie’s List, here are some details about credits:
- The credit applies to material costs for windows, doors, insulation, and roofs. It also applies to material, labor and installation costs for HVAC systems, non-solar water heaters and biomass stoves.
- The improvements must be installed in your primary residence between January 1, 2009 and December 31, 2010. New construction and second homes are not eligible for credits.
- Save your receipts and manufacturer certification statements.
- The credit also applies to materials, installation, and labor for geothermal heat pumps. solar water heaters, solar panels, fuel cells, and small wind energy systems. These credits have different limits. Namely, the tax credit is 30% of the total costs with no upper limit through 2016. And this credit also apples to new construction, second homes, and rental homes.
- Some hybrid vehicles also qualify for a separate credit based on make and model. But keep in mind that this credit is being phased out as sales reach a certain threshold. Visit fueleconomy.gov for more information.
- Products must meet specific standards to qualify for the credit. Energy Star compliance isn’t alway sufficient. For a full list of specifications and qualified products, go to energystar.gov/tax credits.
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