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Home Improvement Tax Credits For Energy Efficient Improvements
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 The American Recovery and Reinvestment Act of 2009 signed into law by President Obama provided a whole slew of home improvement tax credits for homeowners who do energy efficient home improvements.
Energy Efficient Home Improvement Tax Credits Available to Homeowners
The US Congress has passed many laws in the past that authorized different tax credits and energy efficient guidelines for their respective tax credits. The American Recovery and Reinvestment Act of 2009 provides in many cases more stringent energy efficient guidelines in its effort to make a bigger impact on reducing the United States' reliance on energy.
In some cases these guidelines are more stringent than EnergyStar qualified products and homes. You can find greater detail of Act's guidelines at EnergyStar.gov.
- Exterior Windows and Skylights
- Storm Windows
- Exterior Doors
- Storm Doors
- Metal Roofs
- Asphalt Roofs
- Insulation
- Central A/C
- Air Source Heat Pumps
- Natural Gas or Propane Furnace
- Oil Furnace
- Gas, Propane, or Oil Hot Water Boiler
- Advanced Main Air Circulating Fan
- Gas, Oil, Propane Water Heater
- Electric Heat Pump Water Heater
- Biomass Stove
- Geo-Thermal Heat Pump
- Solar Water Heating
- Photovoltaic Systems
- Residential Small Wind Energy Systems
- Residential Fuel Cell and microturbine system
How To Qualify For Energy Efficient Home Improvement Tax Credits
- You must purchase and install the energy efficient appliance/upgrades between January 1, 2009 until December 31, 2010.
- The energy efficient improvements must be made to your home, principle residence.
- If you make energy efficient improvements to your second home or rental/investment properties by installing solar water heaters, solar panels, small wind energy systems you may be eligible for tax credits under the American Recovery and Reinvestment Act of 2009.
- The max tax credit that you can get is $1,500 for all of the energy efficient improvements you make, except for the instances where you installed : geothermal heat pumps, solar water heaters, solar panels, fuel cells, and small wind energy systems. These items are not subject to the $1,500 cap and eligible for a larger 30% tax credit. Special provisions apply to fuel cells and building a new principle residence. (please see your tax preparer for more information on this).
- To qualify for the tax credit you must provide your purchase receipt and a statement from the manufacturer of your appliance saying that it meets the government guidelines for being eligible for tax credits under this Act.
- Special provisions apply for building a new home and a new home home that is energy efficient. Part of the provisions include using a home builder or contractor who is "energy efficient" certified (please see your tax preparer for more information on this).
Article by Dale Stouffer. Dale has a Masters in Urban and Regional Planning from the University of New Orleans and Bachelor of Science in Environmental Policy Analysis and Planning from the University of California, Davis.
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