Are you one of the many people who are not only considering remodeling but also reducing their carbon footprint while saving money? If you are, taking the next step just got a lot easier thanks to new, expanded tax benefits that are available for 2009 and 2010 as part of the recently enacted American Recovery and Reinvestment Act.
Because of the new act, homeowners can now get larger tax credits for making energy efficient improvements or installing alternative energy equipment for their home.
The non-refundable tax credit covers 30% of the cost of qualifying improvements up to a total credit of $1,500, such as adding insulation, energy-efficient exterior windows, and energy-efficient heating and air conditioning systems. It’s a significant change in the rules that actually triples the benefit for these energy efficient improvements. You should also be aware that alternative energy equipment, such as solar energy panels and solar water heaters, do not have caps on tax credits and are available through 2016.
Our resident real estate tax expert, “This is a great opportunity for those considering green improvements to their home. Make sure to work with your contractor and keep all receipts and certification statements. Unfortunately, the credit does not cover energy-efficient appliances and it only applies to improvements done to your principal residence.”
So, if you’re ready to remodel and go greener, this may well be the perfect time. As always, please contact us beforehand to discuss how these new, expanded tax benefits impact your specific tax situation.