Tax credits offer homeowner valuable options for home improvement that can result in reduction of taxes owed the government, but time is running out as these energy saving improvements must be completed by the end of 2010.
The American Recovery and Reinvestment Act of 2009 (ARRA) has driven interest in home energy efficiency by providing homeowners with the opportunity to earn up to $1,500 in one-time tax credits for qualifying upgrades. But the tax credit clock stops on December 31, 2010, so now’s your chance to make qualifying purchases that will likewise improve the comfort and value of your home.
How do you collect that tax-credit trophy? Just purchase and install any combination of qualifying products at your primary residence by year’s end, then use product receipts, manufacturer certifications and IRS Form 5695 to apply for credits equal to 30 percent of the cost (and for some items, installation) of each qualifying product. Energy efficiency tax credits are a winning way to trim your 2010 tax bill, as they reduce the dollar-for-dollar amount of tax you pay. Plus, local utility and state rebates can compound your savings. Here are a few possible options to add to your autumn energy efficiency plan.