How to Get Energy-Saving Tax Credits for Your Home |
One of the biggest costs in maintaining your home is your energy bill, and this is a great time to make home improvements to increase the energy efficiency of your home. Why? First of all, even modest improvements like replacing weatherstripping around doors and caulking around windows can save you money. Better yet, the American Recovery and Reinvestment Act of 2009 includes several new and expanded tax credits homeowners can take advantage of while increasing their home’s energy efficiency. To qualify for tax credits, improvements must typically be made on the owner’s primary residence, although some items can be claimed for second homes. Improvements must be placed in service from Jan. 1, 2009, through Dec. 31, 2010. For the following home improvements, a household can earn a tax credit for 30 percent of the improvement cost – up to $1,500 total for all improvements made: • Windows and doors including energy-efficient skylights, storm windows, exterior windows, storm doors and exterior doors; • Roofing and insulation, including metal or asphalt shingles; • Heating and cooling systems including energy-efficient central A/C units, oil and gas furnaces; and • Water heaters including energy-efficient gas, oil, or propane water heaters and electric heat-pump water heaters. Homeowners must do their homework before making any energy-saving purchases, because not all products qualify for a tax credit – even products with an ENERGY STAR seal. (ENERGY STAR is the Environmental Protection Agency’s standard for energy-efficient consumer products.) A full list of qualifying home improvements and other information is available online at: energystar.gov/taxcredits. |