RISMEDIA, September 2, 2010—Time is running out for homeowners to complete summertime projects that are eligible for one of the home energy efficiency tax credits. If you are interested in seeing more green this tax season, the following home improvement projects may be your best option.
Open the door to energy-saving upgrades
The nonbusiness energy property credit expires Dec. 31, 2010 and is for 30% ($1,500 total maximum for 2009 and 2010) of the cost of certain energy-saving upgrades. This includes external windows and doors, insulation, roofing, HVAC and non-solar water heaters meeting specific energy guidelines.
“Home improvements are seen by many as an investment in the value of their home,” said Jackie Perlman, senior analyst with The Tax Institute at H&R Block. “However, taxpayers can see their investment pay off much sooner with these energy efficient changes.”
Roughly 4% of taxpayers claimed an average $750 nonbusiness energy property credit for home energy improvements on their 2009 tax returns. Taxpayers in this group are eligible to make additional improvements and claim the balance of their $1,500 lifetime credit on their 2010 tax returns.
“Reep” the benefits of energy-producing systems
Additionally, the residential energy efficient property (REEP) credit is for 30% of the cost of alternative energy-producing systems, including solar energy systems, geothermal heat pumps and small wind turbines. There is no lifetime cap for this home energy efficiency tax credit and it expires in 2016.
“Energy-saving, and especially energy-producing projects, can take longer than expected, so taxpayers need to add them to summer to-do lists and get started now,” Perlman said.
For more information, visit www.thetaxinstitute.com.
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