Did you know during 2009 and 2010, you can claim a 30% tax credit on the first $5,000 you spend on energy-efficient home improvements? That’s a $1,500 credit, not a deduction, because it reduces your tax bill dollar for dollar.
Geothermal heat pumps, solar water heaters, solar panels, fuel cells, and small wind energy systems are not subject to the cap, therefore tax credit will be given for 30% of the total cost of these products.
The new break is better than the former home improvement credit, which was effective during 2006 and 2007. The old plan only gave a 10% payback and the maximum credit you could claim was $500 over your lifetime. So if you used up your old $500 credit, you can start fresh and claim the full $1,500.
The stimulus will apply to specific items such as:
• upgrading attic insulation
• installing a storm door
• adding or replacing energy-saving windows
• metal roof
• water heater
• new furnace
So if you are considering replacing your furnace with a geothermal heat pump or installing a tankless water heater contact us. We would love to help you become more energy-efficient and obtain a tax credit at the same time.
For more specific information on the Federal Tax Credits for Energy Efficiency please visit the following link: http://www.energystar.gov/taxcredits
