The federal government is offering financial incentives for eco-friendly home improvements. The Wall Street Journal discusses a few options to collect your green tax credits:
Upgrade your insulation, windows, doors, roofing, heating and air-conditioning system or water heater, and you could qualify for a federal tax credit for 30% of the purchase price of the product — up to a $1,500 maximum credit.
To qualify for the credit, you must place those purchases in service between Jan. 1, 2009 and Dec. 31, 2010.
“The $1,500 cap applies to the aggregate amount of credits claimed in both years combined,” says Robin Christian, senior tax analyst at the tax and accounting business of Thomson Reuters. “Also, only improvements made to your principal residence qualify — vacation homes are not considered.”
Details on which products qualify can be found on the Environmental Protection Agency’s Energy Star program Web site. Some stores also post information. For instance, at Home Depot’s Web site, there’s a link to a list of specific products that qualify. Click on “Tax Credit Eligibility.”
Another, larger credit program, also administered by the Department of Energy, lets homeowners deduct up to 30% of the cost of fuel cells, solar cells or solar water heaters, wind energy and geothermal energy generators. These credits have no cap and are in place until 2016.
WSJ suggests starting with insulation and windows to make your home more energy efficient.
“If you need insulation, that is the most cost-effective upgrade you can make — even without a tax credit,” says Karen Schneider, Web-site manager for Energy Star. “If you have a 50-year-old home and never looked at the insulation, now is the time to do that.”
Many insulation projects, such as upgrading or adding insulation in an attic, are easy for do-it-yourselfers, says Michael Chenard, director of environmental affairs for home-improvement store Lowe’s. “Insulation is one of the easiest things to do that is covered by the tax-credit promotion,” he says.
http://online.wsj.com/article/SB125520769923778297.html?mod=rss_whats_news_us
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