There is only three weeks left of December! I can hardly believe it. Time is ticking away to buy holiday gifts, prepare for New Year's Eve parties and to make home enhancements to save energy and money. Wait . . . what was the last item?
Yes, doing certain renovations to your existing home can reduce your utility bills as well as offer sizeable tax credits when filing your 2010 income tax return. Renovations include upgrades such as energy-efficient windows and doors, insulation, water heaters and cooling equipment. You have until December 31 to qualify for up to $1,500 in said tax credits.
Note that the house must be your principal residence, as the credits don't apply to new construction.
EnergyStar.gov offers more information so visit their Web site. But below is a quick synopsis of what qualifies for the tax credit.
Products and upgrades eligible for the tax credit:
- Energy-efficient doors and windows. Installation costs are not eligible for the credit. Other restrictions apply.
- Water Heaters. Credit includes installation costs; some restrictions for energy efficiency apply.
- HVAC components, including advanced air handlers, air force heat pumps, central A/C units, boilers, propane, and gas furnaces. Tax credits include installation costs.
- Insulation, whether spray foam, fiberglass, or blow-in cellulose, they're all covered so long as they meet IECC requirements. Installation cost is NOT covered.
- Biomass Stoves.
- Metal and asphalt roofs. Credit doesn't include installation costs.
Some of the tax credits will take into account installation costs, while other credits do not. It really does depend upon what you're claiming the credit on. To find out if your product is a part of the credit, and whether you can include installation costs, check out the government Web site here.
Read more about "Update your Phoenix home to be more energy-efficient - and save money at tax time too!," at MyPhoenixmls.com
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