Residential Energy Tax Credits
You should already know that Uncle Sam is offering tax credits to homeowners that improve the energy efficiency of their primary residences.
There are a few things you should be aware of before you tackle any projects. The improvements must meet IRS efficiency standards. Not all products that carry an Energy Star label qualify. Remember to save your labels and receipts; you may need them later to get the tax credit. If you are having a contractor make the improvements, ask that your bill be itemized showing materials and labor separately because labor is not an allowed cost on smaller jobs.
Homeowners can re-coup 30% of the cost, up to a total of $1,500, for projects completed in 2009 & 2010. Here is a list of those projects:
- Replacing older windows & doors
- Adding insulation
- Upgrading HVAC systems
- Put in a newer water heater
- Install efficient biomass stove
- Fix a worn roof
Labor can be included in the credit for bigger jobs like HVAC, stoves & water heater. Only the cost of materials is allowed for insulation, roofs, windows & doors.
There are a few projects that don’t have a cap because they involve using alternative energy sources. Homeowners can recoup 30% of the costs, and the credit runs through 2016. These credits can be claimed on your primary residence as well as secondary homes. Rentals do not qualify. Here’s the list:
- Geothermal heat pumps
- Small residential wind turbines
- Solar energy systems
IRS Form 5965 must be completed to claim your rebate. For further instructions & guidelines a tax advisor should be consulted.
Posted by:
Colleen Kuchta
Comments
·
">
|
Tagged with energy tax credit |
