Save money on Taxes and on Energy Costs
Reduce your tax bill by making energy-efficient improvements to your home.
It will reduce your energy costs as well.
The tax credit for energy-efficient windows or doors, air conditioners or  furnaces, or other energy-saving improvements returned for 2009 and 2010. It pays off even better than when it was last available in 2007.
Gain
a maximum credit of $1,500.00 under the American Recovery and Reinvestment Act of 2009.
Improvements made by homeowners will give them eligibility for a credit equal to 30 percent of the cost, up to the $1,500.00
The taxpayer would have to pay $5,000 on energy efficiency improvements to get the maximum credit. Previously the maximum was $500.00
Homeowners can claim the new credit even if they had taken the old one.
Qualifying improvements had to have been made during 2009 or 2010 to be able to claim them the following year.
Limits on individual items are gone and there is no income limit for the credit.
Be careful as the standards are now higher in the new law than those for 2007. The IRS warns that not all products carrying the Energy Department’s Energy Star label qualify.
The manufacturer has to certify that the product qualifies. It would be best to keep a copy of the certification statement.
Alternative energy users could reap bigger benefits with a bigger tax credit.
Home owners who install solar water heaters, geothermal heat pumps or small wind turbines, can get a 30 percent tax credit with no maximum. Site preparation and installation costs also apply. File form 5695 to claim the credit.
Plug in type electric vehicles get new tax credits as well with credits ranging from $2,500.00 to $15,000.00, depending on the battery, the kind of vehicle and its weight.
The first 60,000 hybrid or certain alternative energy cars sold by a manufacturer will qualify for tax credits
Some car models were available that could still apply . For 2009 models, manufacturers that had hybrids still eligible for the credit are Cadillac, Chevrolet, Chrysler, Dodge, Ford, GMC, Mazda, Mercury, Nissan and Saturn.
2010 model year cars that apply are hybrids manufactured by Cadillac, Chevrolet, Ford, GMC, Mercury, Mercedes-Benz and Nissan.
This car availability info is obviously time sensitive so check for yourself before giving it another thought.
As always check with the IRS for the latest changes in the laws www.irs.gov/
|
