Thanks to the Recovery Act, people who weatherize their homes can not only lower their heating bills but also reduce their tax liability.
The Act has been expanded into two home energy tax credits: Nonbusiness Energy Property Credit and Residential Energy Efficient Property Credit.
The Nonbusiness Energy Property Credit equals 30 percent of what homeowners spend on energy-saving upgrades up to $1,500 for the combined 2009-2010 tax years. Products people can use to improve their homes range from high-efficiency heating and air conditioning systems to installing skylights.
The Residential Energy Efficient Property Credit also equals 30 percent of what a homeowner spends on eco-friendly improvements, such as solar electric systems, wind turbines and fuel cell property.
However, not all energy-saving upgrades can give citizens a break on their taxes. People should check the manufacturer’s tax credit certification statement before buying any kind of environmental-conscience product. Homeowners who qualify can claim both credits when they file their 2010 income tax return.
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.