Limited-time-only Government Home Energy Tax Credit
Winter is around the corner and so is the high cost of heating your house. You might want to think about making home improvements which would help cut your energy costs. Now is a good time to put some of those ideas into action because of the recent extension of the home energy tax credit. The government is allowing homeowners to claim 30% of the cost of qualified energy-efficient products up to $1500 through Dec. 31, 2010.
To earn the tax credit you must save the receipts for qualified purchases placed into service between Jan. 1, 2009 and Dec. 31, 2010. Get the manufacturer's certification of eligibility (usually on the manufacturer's website) and keep a copy with your tax records. At tax time claim the deduction on your federal tax return.
There are 2 categories of qualifying home improvements. The first one consists of the building envelope products, such as replacement window, roof products, and insulation; the second category is heating and cooling equipment (for which installation costs also count toward the tax credit),such as water heaters, central air-conditioning and boilers.