Sea Glass

Sea Glass

Tuesday, January 12, 2010

Renovation Incentives

If you installed windows or insulation in 2008 and are looking for a tax credit, sorry, but you’re out of luck. But, hey, it is now 2010 and times have changed. So, it’s drafty, your electric bills are looking like a mortgage payment and your windows were installed by Noah’s Ark Windows & Doors, LLC. You’re ready for a change!

Here's a look at what's available:

•A tax credit for 30% of the cost of energy-efficient doors and windows, insulation, air conditioners, furnaces, heat pumps and boilers, up to a lifetime cap of $1,500. This credit is available for 2009 and 2010.
That means if you spend $5,000 on new windows this year and claim a $1,500 tax credit on your 2010 tax return, you won't be able to claim an additional credit in 2011.
This is a more generous credit than the one that was available in 2006 and 2007, which covered 10% of the costs, up to a lifetime cap of $500. The old credits also contained individual caps, such as a $200 limit on new windows. With the new credits, you can claim 30% of all your energy-efficient costs, up to the lifetime cap.
For windows, doors, insulation and other similar projects that tighten up the "shell" of your home, the credit is limited to the cost of materials.
However, if you buy a new air conditioner, furnace, heat pump or boiler that meets the energy-efficient guidelines, you can include the cost of installation in calculating the credit.
Only improvements to your primary residence qualify for the credits, unlike other tax credits, there are no income phase outs. In addition, taxpayers who are subject to the alternative minimum tax — a parallel tax system that often affects people who pay high property taxes — will be able to claim the credit.

•Expanded tax credits for more ambitious projects, such as solar water heaters.
Starting in 2009, homeowners who install solar water heaters, geothermal heat pumps and wind energy systems are eligible for a tax credit of up to 30% of the cost, with no caps. Previously, caps on these types of projects ranged from $2,000 to $4,000. These tax credits are available through 2016, and both labor and materials qualify.
So, look to the future, realize that what you spend today, wisely, can enrich your life and be a small part of a better world.

Jeff Good
Benchmark General Contractors, Inc.

No comments:

Post a Comment