"Homeowners can save as
much as $1,500 on 2009-2010 federal income tax return"
People can now weatherize their homes and be
rewarded for their efforts. According to the Internal Revenue Service,
energy-saving improvements this fall can cut their winter heating
bills and lower their 2009 tax bill as well.
The American Recovery and Reinvestment Act (Recovery
Act), enacted earlier this year, expanded two home energy tax credits: the
nonbusiness energy property credit and the residential energy efficient
Energy Property Credit
This credit equals 30 percent of what a homeowner
spends on eligible energy-saving improvements, up to a maximum tax credit
of $1,500 for the combined 2009 and 2010 tax years. The cost of certain
heating and air conditioning systems and stoves that burn biomass all qualify, along with
labor costs for installing these items. In addition, the cost of
windows and skylights, energy-efficient doors, qualifying insulation
certain roofs also qualify for the credit, though the cost of
installing these items does not count.
A homeowner can save as
much as $1,500 on his or her 2009 federal income tax return. Due to limits
based on tax liability, other credits claimed by a particular taxpayer and
other factors, actual tax savings will vary. These tax savings are on top
of any energy savings that may result.
Residential Energy Efficient Property Credit
Homeowners going green should also check out a
second tax credit designed to spur investment in alternative energy
equipment. The residential energy efficient property credit, equals 30
percent of what a homeowner spends on qualifying property such as solar
electric systems, solar hot water heaters, geothermal heat pumps, wind
turbines, and fuel cell property.