Homeowners will get a tax break this year and I am not referring about the first time home buyer tax credit or extension. Homeowners who invest in energy efficient household items will be eligible for tax credits if purchased between January 1 and December 31, 2010. In addition to December 31, 2010 cutoff date, there are the Products Purchase before & on/or after June 1, 2010. Product Purchased on/or after will be held to tighter restrictions that the Products Purchase before June 1, 2010.
Products Purchased before June 1, 2010
Windows, doors, and skylights must meet or exceed the prescriptive criteria outlined in the 2001 Supplement of the 2000 International Conservation Code (IECC) or the 2004 Supplement of the 2003 International Conservation Code (IECC) for the climate zone in which the product was installed.
According to ENERGY STAR the documentation required should be fairly easy to provide: For windows and skylights, homeowners may use either ENERGY STAR labels (internet +printer = labels, just kidding as I do not advise falsifying ENERGY STAR official labels or other documentation for that matter) or manufacturer certification statements to document eligibility for the tax credit. Doors are required to have a manufacturer certification statement.
Products Purchased on or after June 1, 2010
Windows, doors , and skylights must have U-factor and Solar Heat Gain Coefficient (SHGC) rating of 0.30 or less. These ratings must be certified by the National Fenestration Rating Council (NFRC).
Documentation Required: Homes must obtain a manufacturer certification statement to document window, door, or skylight eligibility for the tax credit. This can usually be obtained through the manufacturer or the installer of the product.
The IRS provides a greater look into household improvement which go far beyond windows, doors, and skylights but in some cases can require a lot more financial investment over basic household saving energy tips.
Residential Energy Efficient Property Credit (Section 112)
This nonrefundable energy tax credit will help individual tax payers pay for qualified residential alternative energy equipment, such as solar hot water heaters, geothermal heat pumps and wind turbines. The new law removes some of the previously imposed maximum amounts and allows for a credit equal to 30% of the cost of qualified property, notice 09-41.
These government tax credits are not going to come without out a large initial investment. Windows, installing skylights, and doors are never cheap especially if a whole home is retrofitted. Other the hand, if plans are to stay in a home for an extended period of time then taking advantage of environmental tax credit incentives could be a excellent choice.
Sources: EngergyStar.gov, IRS.gov
2 Comments
So, it is a benefit to have energy efficient household items to save tax credit
Hi, yes it would be a benefit for anyone to improve their home for two reasons: 1) improve the energy efficiency of their home, and 2) to take advantage of government incentives that are greener for the environment.