Homeowners can benefit from newly expanded federal tax credits for energy efficiency by upgrading their homes. You can claim up to $1,500 in tax credits by reducing energy consumption through the Existing Home Retrofit tax credit. The types of projects that qualify include adding insulation, replacing doors and windows, adding central air, and updating heating systems. This is a great way to benefit from lower energy bills, while getting federal tax credits.
Another tax credit is available for alternative energy sources. The Wind, Solar, Geothermal and Fuel Cell Tax credits are available at 30% of the cost through 2016 for Geothermal heat pumps, solar panels, solar water heaters, small wind energy systems and fuel cells. This credit can be used on existing homes or homes being built. If you want to think green and save money now is a great time to investigate further.
All of these energy-efficient home products must be installed between Jan. 1, 2009 and Dec. 31, 2010. The credits are only valid for improvements made to the taxpayer’s principal residence, except for qualified geothermal, solar, wind property, which can be installed on any home used as a residence by the taxpayer.
Check with your tax professional to ensure correct application of the energy-efficiency tax credit. Also make sure to save all receipts and records related to your purchase and installation.
Right now is a great time to think green and get rewarded for doing it!