Federal tax credits for most energy-efficient home improvements are set to expire at the end of 2011. Experts say they won’t be extended. Purchase and installation must be this year, so you need to start projects no later than Otober or November 2011.
Products and projects that qualify for the federal tax credit may be found at:
Rebates and tax credits are also offered by states and these incentives can be searched at:
The maximum federal tax credit is $500 and the amount varies depending on product. But tax credits are often better than deductions, which only reduce your taxable income. Tax credits reduce your total tax liability, so it’s like getting money back from the IRS.
Plus, energy-efficient upgrades save you money year after year. Insulation can reduce air leakage 20% to 30%, saving about $220 a year. New windows can save up to $500 a year. A new air conditioner is typically 30% more efficient than a 10-year-old one. New ductwork, central air cooling and water heaters are also very cost-effective improvements.
For bigger green projects, federal tax breaks are available until 2016! Examples include solar energy systems, geothermal heat pumps, small wind turbines and fuel cells. These may earn a tax credit worth up to 30% of the cost, with no dollar limit. For more information, check the Energy Star website: http://www.energystar.gov/index.cfm?c=tax_credits.tx_index
Check the websites above for eligible projects. And always consult with a tax professional before proceeding with expenditures that have tax implications.
P.S. Thinking of upsizing, downsizing or refinancing to take advantage of today’s affordable home prices and historic low mortgage rates? Please call or email us now to discuss your situation.
We’re always glad to answer any questions…. Have a great day!
Michelle Castle provides mortgage loans to all of North Texas and Southern Oklahoma. Call Michelle Castle at (903) 892-1998 if you are looking for a home loan in North Texas and Southern Oklahoma.