Energy Credit...The Advantage is Yours

I recently received this information from Kristine Messick, and it was so well presented I asked to share it word for word.

Energy Efficiency Tax Credit

Now is the time to improve the energy features of your house.  During 2009/2010, you can recoup your investment by:

Lower your energy bills               Increase homes value

Save up to $1,500 on tax bill       Improve the environment

Call Crow's Nest Home Inspections to schedule an Energy audit and find out what improvements will make the largest impact on reducing your energy bills now.

The American Recovery and Reinvestment Act of 2009 allows tax credits for energy efficiency improvements. Homeowners may claim up to 30% of costs of all equipment purchased during the aggregate two-year period of 2009 and 2010, up to $1,500 total.

Tax credits for installations made in 2006 and 2007 are still limited to the previous law's $500. Any purchase made in 2008 is not eligible for this tax credit.  

Eligible Improvements  
Owners of existing homes receive a tax credit worth 30% of the cost of upgrading the efficiency of their home. The following improvements are eligible for the tax credit:

Tax credits are available at 30% of the cost, up to $1,500, in 2009 & 2010 (for existing homes only) for:

Windows and Doors                           HVAC

Insulation                                            Water Heaters (non-solar)

Roofs (Metal and Asphalt)                   Biomass Stoves

Tax credits are available at 30% of the cost, with no upper limit through 2016 (for existing homes & new construction) for:

Geothermal Heat Pumps                    Small Wind Energy Systems

Solar Panels                                       Fuel Cells

Solar Water Heaters

Performance and quality standards for tax credit eligibility vary by technology. See the Energy Star web site  for detailed information on qualifying products, http://www.energystar.gov, under Federal Tax Credits for Energy Efficiency.

What is a Tax Credit?
There is an important difference between a tax credit and a tax deduction. A tax credit is subtracted directly from the total tax liability. On the other hand, a tax deduction is subtracted from income before total tax liability is computed. This means that a credit is much more advantageous to the taxpayer than a deduction.

Provided by:
Kristine Messick
Inspector/Energy Auditor
Crow's Nest Home Inspections, LLC
Structural Pest Inspector Lic. No. 67622
ASHI Member No. 242969
Cell (206) 310-2613 or (360) 628-9010
Schedule (206) 354-3092
www.crowsnestinspect.com