Buyers, homeowners, and yes even contractors are diligently searching for new ways to incorporate “Green” technology into homes, not only to reduce their carbon footprint, but to save money (that’s a biggie these days) as well as qualify for the Govt Energy Tax Credits available until the end of this year.
So, if you haven’t heard of the Energy Tax Credit, it is the US and State governments way of giving you an incentive to do all of the above.
There are 2 basic tax credits available on the Federal Level for those of you energy efficient minded folks to make improvements to your homes.
Wind, Solar, Geothermal & Fuel Cell Tax Credit.
It’s good for both existing homes And new construction when used for a principal residence.Homeowners will receive a credit totaling 30% of their cost for improvements put into service between Jan 1,2011 and December 31,2011.What qualifies? We thought you would never ask!
- Geothermal Heat Pumps
- Solar Panels
- Solar Water Heaters
- Small Wind Energy Systems (we have some clients using this and actually selling electricity back to Rocky Mtn Power- true story!
- Fuel Cells (on this item the credit may not exceed $500 for each 0.5 kilowatt capacity, other limits apply in the case of joint occupancy).
This credit is for Qualified Energy Efficiency Improvements
which gives a 10% credit for purchases that were “placed into service” this year.This particular credit does have a limit (larger one last year…but that’s another story) with the “maximum energy tax credit” for all taxable years being $500, with no more than $200 of the credit attributable to expenditures on windows.Now for those of you who don’t speak “government”, this means that taxpayers who have claimed $500 or more (there was more last year and the year before, don’t shoot the messenger) of this energy tax credit in prior years (i.e. 2009 &2010) can’t get anymore.Also, anything added must meet or exceed the criteria established by the 2009 International Energy Conservation Code and be Newly installed in a primary residence in the United States (so no go fixing up the Tahiti vacation home you guys)And finally, here is a partial list of what qualifies:
- Building Envelope Component (translation= siding)
- Insulation materials or systems
- Exterior windows
- Storm winders and storm doors
- Metal or asphalt roofs
- advanced main air circulating fans ( translation= attic fans)
- Qualified natural gas, propane, or furnaces
- Water heaters and boilers
Now, there may also be tax credits for the State of Utah. Check out the website for that here
So, if you are interested in filing for the energy tax credit with your 2011 tax return, keep Every single receipt along with the make, manufacturer and model number on items you purchase. Then use tax form 5695. Also, it might be wise to seek the help of a tax professional.
And for further info, check out Energy Star
Did You Know
You can finance these improvements with an Energy Efficient Mortgage? Check out our post on it: