Making energy-efficient home improvements means saving on your energy bill, but you could also save money on your taxes as well. For energy efficient improvements you make this year, take a credit for up to $500 on your 2009 tax filing. Take advantage of further tax incentives available in different categories:
- Home Energy Efficiency Improvement Tax Credits include items such as energy efficient windows, insulation, doors, roofs and certain heating and cooling equipment. These products may qualify to receive a tax credit of up to $500. Check out a summary chart of tax credits available to homeowners.
When filing for these tax credits, you'll need to use the IRS Form 5695. Click here for a sample Form 5695. For more information, visit www.energy.gov/taxbreaks.htm - and remember to consult your tax accountant for further guidance on specific tax information.
- For those who install solar electric systems, you can receive a 30% tax credit based on the cost of the system, up to $2,000, as part of the Residential Renewable Energy Tax Credit. The good news here is that this credit is completely separate from the $500 home improvement credit. Geothermal heat pumps also qualify as part of this tax credit.
Another aspect of the Renewable Energy Tax Credit relates to residential small wind turbine systems. This tax credit is for 30% of the costs of the system (up to $500 for each kilowatt of capacity).
- Purchasing a new hybrid? Check out the Automobile Tax Credits for vehicles purchased before December 2010 - the tax credit depends on the fuel economy and other economical factors. There will be some new plug-in hybrid vehicles coming to the market soon - these can also receive tax credit. For information on specific vehicle eligibility and an additional summary, check out: http://www.irs.gov/newsroom/article/0,,id=157557,00.html
- There are also tax credits available for homebuilders and commercial buildings. These credits are awarded based on upgrades that make the buildings for energy efficient. To learn more, Business.gov provides a guide on Energy Efficiency Federal Tax Credits available to businesses.
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