Energy Tax Credit
Have you done your taxes for current year? Did you get energy tax credit for using energy efficient products in your home?
You can reduce your energy costs by installing energy efficient products in your home. The big benefit of installing
the products is, your energy bill will significantly reduce. Plus you get energy efficient credit from the government.
Some people are still think that eco products sound expensive, but within first few years your energy bill will
reduced and over the time the system will pay for itself.
The Recovery Act revised the tax credits for using energy efficient products for homeowners. According to the Act,
if you have installed any products like solar power system, solar water heater and solar attic fan, then you are eligible to
get tax credit from federal government. Some states in U.S. are giving energy credits to home owners.
The following are the changes to the energy tax credit for homeowners.
- The credit is up by 30% from 10%.
- Maximum credit over 2 years has been increased to $1,500.
- The improvements like solar hot water heater, solar power systems, and geothermal heat pumps, fuel cells are still available
through 2016 for both existing and new homes.
- Installation of geothermal heat pumps qualifies for a energy tax credit of 30% of the price of heat pumps.
If you are building a new home, you can qualify for the tax credit for geothermal heat pumps, photovoltaic, solar water heaters,
small wind systems and fuel cells. For commercial buildings the government is giving tax deduction for using the energy efficient products.
You can get detail information here.
If you have made some home improvements or installed new energy efficient products you should keep the records,
save your receipts and the manufacturer certification. You do not have to file the certification with the tax.
In new stimulus plan future tax credits have been secured for those choosing to utilize solar and wind energy
improvements to their homes. The energy credit is not available for improvements made during the year 2008.
Then the credit is available for improvements made during 2009.
You get a credit for Net Metering. Net metering means the solar power system installed in your home
generate more electricity than your home need, you sell the unused energy to the utility company. At times,
when you need more electricity than your system has generated, you buy from your utility company. It is measured by the meter.
You get credit or cash incentive for selling the excess energy to your utility company.
If you are buying a hybrid gasoline-electric, diesel, battery-electric, alternative fuel, and fuel cell vehicles.
You are eligible to get credit too. For more information visit IRS Website. You can find all the information about how to file for energy credit.
The above information on energy tax credit is for information purposes only. It is not substitute for legal advice. Check with your state government or tax advisor for detail information.
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