Money in the Bank-Efficiency Upgrading

In one of our recent blogs we touched on how you can find a few more tax deductions, thanks to Uncle Sam and last year's Recovery and Reinvestment Act (AKA: The Stimulus Bill). Today we'd like to touch on a few more things to think about.

Qualifications for the 30% deduction guidelines are much tougher than in the 2006-2007 program. First, all improvements must have taken place after February 17, 2009. Second, be sure, as we mentioned before, that when you are buying products (windows, skylights, insulation, etc.) that you either see a label with the Energy Star label or you request a Maufacturer Certification Statement that the product or component qualifies for the tax credit.

Another great idea is that consumers who want to generate their own power are eligible for renewable energy tax credits on projects completed through 2016 (including alternative-energy equipment connected to your house, such as solar water heaters, geothermal heat pumps, small wind turbines, and other similar projects).

Be sure and check out the following resources:

To review guidelines for qualifying purchases visit the IRS website.
To find guidelines on what qualifies for both tax credits visit Energy Star.
To find state and local energy efficiency assistance available visit U.S. Department of Energy

Money in the Bank-Taxable Deductions!

Who doesn't like to save money?

Who doesn't like to hear from your tax clerk that you are getting a big whopping return from last year?

Amidst all of the negative in a struggeling economy here is one area Uncle Sam is actually putting money back in your bank account, but don't think it will just happen on it's own! Take a second, educate yourself and see how your remodeling, upgrading and 'greenovating' can become a taxable deduction!

Below you will find some major tips from an article out of Consumer Reports on "Energy Tax Credits at a Glance" that we thought we'd make you aware of, if you're not already. It's a good reminder to keep around and on the forefront of your mind if you are still looking for some tax deductions that you may have missed.

In 2009 the government set up The American Recovery and Reinvestment Act and it includes tax credits for making your home more energy efficient. The credits cover 30 percent of projects finished in 2009 and 2010, up to $1500 per year for most projects. (They don't include installation costs for insulation, sealing air leaks, windows, doors, and roofs, but Solar, wind and geothermal projects qualify for up to 30 percent of their cost, not just $1500).

To claim the credits you'll need to file IRS Form 5695 with your taxes for the year in which the job was completed. Be sure to keep a copy of the Manufacturer's Certification STatement and all receipts and itemized bills. Actual costa dn savings will vary depending on the size, age, location, and condition of the home.

Here is a short breakdown: