Whether it's winter cold or summer heat , insulation makes your home a lot more livable. From 2009 to 2010, the government helped out, letting you take $1,500 in tax credits for adding insulation. If you took full advantage of this credit, congratulations! Below are a few tips to follow:
- Be sure to file IRS Form 5695 in 2011.
- Relax, because you've taken all the energy credits you've got coming.
If you didn't, and you're kicking yourself as you shiver in the cold, you still have options.
At the last minute, the government added a suite of less-generous but still useful energy tax credits, available only to those who didn't take advantage of the 2009-2010 program. Among these is a $500 credit for insulation.
Tax credit limits and deadlines:
- 10% of expenditures, up to $500 for the year, for all energy improvements combined.
- Install the insulation by Dec. 31, 2011-or gamble on another extension.
- Save receipts and labels for Uncle Sam.
Tax Credit Capped at $1,500
Replace aging windows, HVAC systems, and non-solar water heaters, install efficient biomass stoves, add insulation, or fix a worn roof, and you might collect a tidy credit come tax time. To encourage greater energy efficiency, homeowners can recoup 30% of the cost, up to $1,500, for making any of these qualifying upgrades during 2009 or 2010. Claim the credit for the year in which you complete the project.
The improvements must be made to your existing primary residence to be eligible. You can include the labor costs for HVAC, stove, and water heater installations; only the cost of materials counts for insulation, roofs, and windows (as well as exterior doors and skylights). Ask your contractor for a receipt that itemizes materials and labor.
For more information on home improvements and tax credits e-mail Mandy Beckett; REALTOR; e-Pro, SFR at William Raveis Real Estate; 14 Church Hill Road; Newtown, Connecticut 06470.
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