Time is running out on a federal tax credit that you could save you money on energy-efficient home improvements. Homeowners have until December 31, 2010 to buy qualifying items such as HVAC systems, water heaters, insulation, roofing, biomass stoves, windows and doors.
“If you’ve been putting off replacing your old heating and cooling system, for example, you should act before the end of the year,” says Angie Hicks, founder of Angie’s List, the nation’s leader in consumer reviews on local service companies. “A more energy-efficient model may cost more up front than a less efficient model, but you can recoup 30 percent of the cost through this tax credit, as well as the long term savings you’ll see in your energy bills.”
The credit is 30 percent of the cost of qualifying energy-efficient home improvements, up to a maximum credit of $1,500 for 2009 and 2010 combined. A tax credit is a dollar for dollar reduction on the amount of tax you owe.
“It’s important for homeowners to research the credits for home improvement products before buying,” adds Hicks. “Each item has its own requirements in order to qualify. For example, materials and labor are included in the tax credit for a biomass stove, but for insulation, its materials only. And new construction and rentals are not eligible for the credit”
Hicks also advises homeowners owners to save receipts and the signed statement from the manufacturer certifying the product qualifies for the tax credit with your records for tax time.
7 Money Saving Tax Credits:
Angie’s List collects consumer reviews on local contractors and doctors in more than 500 service categories. Currently, more than 1 million consumers across the U.S. rely on Angie’s List to help them make the best hiring decisions. Members get unlimited access to local ratings via Internet or phone, exclusive discounts, the Angie’s List magazine and help from the Angie’s List complaint resolution service. Take a quick tour of Angie’s List and view the latest Angie’s List news .
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