The heat of summer can bring on higher costs of running air conditioners and other appliances, in addition to increasing the wear and tear of certain machines. Consumers may benefit from purchasing new energy-efficient appliances which will not only improve energy consumption, but also provide them the chance to receive a tax break.
Tax credits are being provided to individuals that purchase new Energy Star qualified appliances. Consumers can purchase biomass stoves, heating, ventilating, and air conditioning (HVAC), windows, doors, water heaters, insulation and even roofing materials while receiving a credit for 30 percent of the costs up to $1,500. These benefits apply through December 31, 2010, on existing and principal residences only.
Other products purchases - such as solar energy systems and geothermal heat pumps - qualify for a credit of 30 percent of costs with no upper limit. This credit is extended to December 31, 2016, and applies to both principal and second homes.
Individuals planning on claiming the credits should keep all documentation of the purchase and make sure to inform their tax preparer that they intend to benefit from the federal program.
Every effort has been taken to provide the most accurate and honest analysis of the tax information provided in this blog. Please use your discretion before making any decisions based on the information provided. This blog is not intended to be a substitute for seeking professional tax advice based on your individual needs.