Uncle Sam wants you to save energy. To help you out with that goal, the government has set aside money in the stimulus package in the form of tax credits for homeowners who make qualified energy related improvements to their homes. These credits have been around since 2005, but recently have increased amounts and extended deadlines. These can be projects from replacing you furnace, insulating your attic to replacing windows and doors. These credits aren’t enough to make it feasible to go out and replace all of these items in your home, but if you were entertaining the thought, it can be a prefect way to help finance the project, give you the peace of mind of ‘going green’, and saving you money in the long run.
Here are some of the requirements, improvements must be installed in your primary residence. They must be install between January 1, 09 and December 31, 2010 (2016 for alternative energy systems) The credit is for 30% of the cost of material only (no labor) up to $1500 per household, this is for all improvements combined. You must file IRS form 5695 and keep a certification statement from the manufacturer and receipts in you files.
There are also state and local rebates for energy improvements you may be able to take advantage of. Check out http://www.dsireusa.org to see which programs are offered in your state.
Projects that qualify for the credit include:
- Sealing and Insulating your attic
- Replacing your roof
- Replacing older windows and doors
- Replacing your furnace, A/C or water heater
- Investing in alternative energy (solar water heaters, geothermal heat pumps)
Erik Laine
LP Design
http://www.lpdesignonline.com
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