INFORMATION ABOUT THE HOME
IMPROVEMENT TAX CREDITS BEING OFFERED:
The American Recovery and Reinvestment Act provides
tax incentives for individuals to invest in energy-efficient products.
Update November 4, 2011 —
The Residential Energy Property Credit (Section 1121) was set to expire at the end of 2010, but was extended for one year
by the Tax Relief and Job Creation Act of 2010. The credit is available for property placed in service in 2011, but with new
rules and limitations. For more information about the 2011 Nonbusiness Energy Property Credit see "What's New for 2011"
in Publication 919, How Do I Adjust My Tax Withholding?
Update: Use 2009 Form 5695 to claim the Residential Energy Property credit and the Residential Energy-Efficient Property credit.
For
information on energy-efficient products, visit the U.S. Department of Energy's Energystar Web site; not all Energy Star products qualify for the tax incentive.
Residential Energy Property Credit (Section
1121): The new law increases the energy tax credit for homeowners who make energy efficient improvements to their
existing homes. The new law increases the credit rate to 30 percent of the cost of all qualifying improvements and raises
the maximum credit limit to $1,500 for improvements placed in service in 2009 and 2010.
The credit applies to improvements
such as adding insulation, energy efficient exterior windows, skylights, and garage doors, and energy-efficient
heating and air conditioning systems.
Residential Energy Efficient Property Credit (Section 1122):
This nonrefundable energy tax credit will help individual taxpayers 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 percent of the cost of qualified property.
Please
refer to your tax adviser on how this may pertain to you and your tax return.
For more details about
this subject see: http://www.irs.gov/newsroom/article/0,,id=206875,00.html
For information on energy-efficient products, visit the U.S. Department of Energy's Energystar Web site - not all Energy Star products qualify for the tax incentive!
Give
us a call when you are ready to make those energy efficient home improvements you've been putting off...now is the
time!!!
