Receive Tax Credits When Refurbishing a Home
Make smart decisions when refurbishing your new home. When replacing outdated appliances, look for the Energy Star seal. When remodeling your home, look for energy-efficient heating and cooling, windows, doors, skylights and water heaters. The US government is offering a tax credit for a variety of energy-efficient building materials for homeowners to encourage investment in energy-saving products. Energy-efficient products conserve energy and reduce costs to consumers by using the latest energy-conservation materials available.
Instructions
Remodel Wisely
1. Invest in the US energy conservation movement. Purchase green building materials when remodeling your home. The American Recovery and Reinvestment Act of 2009 has introduced new energy-efficient tax credits for many standard items necessary in home remodeling. A maximum tax credit allowance of $1,500 or 30 percent of the cost for eligible items is allowed in most circumstances.
2. Make sure you understand which energy-efficient products are not limited to the $1,500 tax credit cap. These products include: photovoltaics, geothermal heat pumps, small wind systems, fuel cells and solar water heaters. Each of these products must meet specific product energy requirements to qualify for a tax credit. Requirements vary from product to product. Not all Energy Star-certified products are eligible for deductions (see Resources below).
3. Keep records of all qualifying energy-efficient products. Save all receipts for your tax records. Manufacturers should provide a Manufacturers Certification Statement for eligible products. Retain this information for your records as well.
4. File for a tax rebate when completing tax returns. IRS Tax Form 5695 should be ready for use when filing 2009 taxes.
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