Monday, October 12, 2009

Make Use of Tax-Credit House Repairs

Thinking about making some home improvements? Don’t let federal stimulus money go to waste! Until December 31, 2010, homeowners can take advantage of a national tax credit of 30 percent of the cost, up to $1,500, on a variety of energy-saving products. Insulation, windows and doors, roofing, heating, ventilating and air-conditioning systems, tankless water heaters and alternative energy programs, such as solar panels and wind turbines, are covered.

Improvements made in 2009 will be claimed on your 2009 taxes (filed by April 15, 2010) — use IRS Tax Form 5695 (2009 version) — it will be available late 2009 or early 2010. Some improvements are eligible until 2016. The has more information. But I'd recommend talking with your tax professional for details on what specific improvements may qualify and the information you'll need to keep (the receipt is an obvious thing, but other information is needed too). As the energystar website makes clear, not all energystar rated products are eligible for the credit.

Finally remember that a tax credit is a dollar-for-dollar reduction in your taxes -- pure money.

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