If you’re interested in decreasing your utility bill and the amount you owe in taxes, check out the new tax credits for some energy-saving home improvements. The Recovery Act Energy Efficiency and Renewable Energy Incentives allow homeowners to receive a tax credit for 30 percent of energy-efficient upgrades, up to $1,500. You can receive credit for a range of upgrades, such as adding insulation, installing energy efficient windows, or replacing a water heater.
For those of you who haven’t filed your taxes yet, visit the Obama administration’s newly launched interactive Tax Savings Tool to determine which tax benefits you’re eligible for (not just for home improvements, but also for college payments, purchasing your first home, and more).
If you’ve already filed your 2009 taxes, don’t fret. You can claim energy improvements made through December 2010 when you file next year.
For a list of energy efficient products that qualify for tax credits, visit the Energy Department’s Energy Star website. These include windows, doors, insulation, roofs, rbiomass stoves, geothermal heat pumps, and more.
Not all Energy Star products qualify for the tax incentive, so be sure to check. For the top ten frequently asked questions, including whether there's an income tax limit on the tax credit, click here.
For more specifics on the new tax sections, click here.
It’s a great way to put a little green back in your pocket, while helping to keep the planet green.