Have you just purchased a home that needs some renovations? Or, are you ready to remodel you current home?
Well, you may be eligible to receive a free federal tax credit under the Recovery and Reinvestment Act for various renovations, which include but is not limited to:
Windows: Approximately $750 per window installed. (Double-check with the contractor to make sure the model you're buying qualifies for the tax credit.)
Roof: From $5,000 to $20,000, depending on the materials for a 2,000-square-foot home. You only get the credit if you've installed an EnergyStar-rated asphalt or metal roof.
Air conditioner/furnace: About $4,000 and up for a central air system, depending on the size of your home. You need to meet specific energy-saving guidelines to get this credit. Water heater: $700 to $1,500, depending on the model and your needs. To get the credit, the new heater has to say somewhere in its documentation that it has "an energy factor of 0.82 or a thermal efficiency of at least 90%."
Solar electricity panels: From $25,000 to $75,000, based on your roof size and how many watts you need. An expensive upgrade, but remember this is one that qualifies for a "super" credit. Put a $50,000 solar system on the roof this year, and you'll qualify for a credit of $15,000 on next year's tax return.
Insulation: From $3,000 to $7,000, depending on the size of the home and the type of insulation used. (It has to meet 2009 standards.) Also, the primary purpose of the product needs to be insulation. You can't put new siding on your home, even though it may have insulating properties, and take the credit.
For further information on what can be claimed, visit: http://www.energystar.gov/index.cfm?c=products.pr_tax_credits.
You can claim the credits on IRS Form 5695 (http://www.irs.gov/pub/irs-pdf/f5695.pdf). Contractors need not provide you with product sales receipts to verify your claim, but you should retain the following for your records as backup:
- Name and address of the manufacturer
- Identification of the component
- Make, model and other appropriate identifiers
- Statement that the product meets the tax-credit standards
- Climate zone for which the criteria are satisfied
- A declaration that the certification statement is true
Happy remodeling!
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