How Energy Efficiency Results in Tax Breaks
Making certain upgrades to your home may just save you money! The nation’s tax system has several money saving opportunities available for those homeowners seeking to make their homes more energy efficient. Although the tax system is very complex and often overwhelming for many consumers, it is worth the time and effort to check out the potential saving that is available for every homeowner of log home plans to country house plans.
In October of 2008, the Economic Stabilization Act of 2008 was signed into law. Part of this act allows homeowners to earn up to $500 in one-time credits by making certain upgrades to the primary residence. A tax credit is typically more valuable than an equivalent tax deduction; tax credit reduces tax dollar-for-dollar while a deduction only removes a percentage. The upgrades included must provide in-home comfort, long-term energy savings, and reduce air pollution. Some examples:
• Windows – Exterior windows, storm windows, and skylights.
• Insulation – Exterior doors, storm doors, roofs, weather stripping and select other sealants.
• Heating and Cooling – Central air conditioning, furnaces, boilers, heat pumps, and water heaters.
From January 1st to December 31st, 2009, any combination of qualifying products can be purchased and installed. The ENERGY-STAR and U.S. Department of Energy websites are resources with more extensive information regarding these tax credits.
Bear in mind, receipts and manufacturing certifications must accompany a specific tax form in order to apply for tax credits. It is important to seek the counsel of a tax advisor when submitting such forms to ensure all guidelines have been properly met. Also, remember to inquire about available local and state rebates to earn even more money for your energy efficient upgrades.
While there are many details involved in earning tax credits, you may find many ways to save money with just a little research. Not only will you gain tax credits, but using energy efficient products will cut living expenses too – whether you live in a country house plan or log home plan! And in no time at all, you will live in a more affordable, energy efficient home with top of the line features!
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