Want to save on both your taxes and power bill at the same time? Then take advantage of the extended Residential Energy Property Credit, a new federal law that increases the energy tax credit  for homeowners who make energy efficient improvements to their homes. Now through December 31, 2010, homeowners can claim up to 30% of the cost of improvements on their existing homes for common energy upgrades such as new:

·         window, doors, and skylights

·         insulation

·         roofs (metal and asphalt)

·         water heaters (non-solar)

·         heating  and air conditioning systems

·         biomass stoves (such as wood stoves)

Even greater savings are available through 2016 for improvements using solar, geothermal, fuel cell, and wind energy, with no upper limit on the tax credit claimed on both existing and new construction.

There are some exceptions and revisions you should be aware of, including the following:

Amount of Credit

For more traditional improvements, the total allowable tax credit for the 2 year period (2009-2010) is $1500.  You may claim credit on up to 30% of the cost of multiple improvements, but only to a maximum refund of $1500.

Materials

It’s  important to realize that not all Energy Star certified products will qualify.  Unlike requirements in effect prior to June 1, 2009, some new criteria calls for greater efficiency, especially in windows, doors, and skylights. These items, for example, purchased on or after June 1, 2009 must have U-factor and Solar Heat Gain Coefficient (SHGC) ratings of 0.30 or less. Specific ratings are available from the IRS for each of the products that qualify for the credit.

Installation

Some qualified energy improvements separate the cost of the materials from installation and labor.

·         Installation costs are NOT covered by the tax credit for windows, doors, insulation and roofs. If you are not installing the product yourself, ask your contractor for an itemized bill that separates out the cost of the product (including their markup, if any) from the cost of the installation/labor. The 30% tax credit can be applied only to the amount that you paid for materials, up to a maximum of $1500.

·         Installation costs ARE covered for heating, ventilation, and air conditioning systems, water heaters, biomass stoves, solar panels, geothermal heat pumps, fuel cells, and wind energy systems.

Homes that Qualify

The tax credit for energy efficiency is available for improvements made to a home located in the United States that you own and use as your principal residence. It can include a house, houseboat, mobile home, cooperative apartment, condominium, or a manufactured home. Rentals do not quality.  Second homes qualify only for adding geothermal heat pumps, small wind turbines (residential), and solar energy systems.

If you are looking for a home, now is an excellent time to take advantage of federal tax credits for both buying a home and improving its energy efficiency. For help in the process and a chance to save thousands more with our Buyer’s Rebate, call or contact HomeBuyingForLess at 1-888-201-8565.