Just as I was starting to work on my income taxes, this reminder arrived from my friend and fellow energy engineer, Jim Cartwright. The Tax Credit that he speaks of is a US home energy efficiency improvement tax credit program that ended at the end of calendar year 2007.
To get the tax credit you had to have spent the money and installed the energy saving hardware by December 31, 2007.
Here is his note:
Here is a way to save some money on your taxes along with the money you save on your home energy bills. Did you add insulation in your house last year? How about new storm doors, or new windows? Maybe a new furnace or geothermal heat pump? If so, you can reduce the amount of taxes you owe or get more money back from Uncle Sam.
At my house, we put in two new energy efficient patio doors (both Pella); two new storm doors, and a 97% efficient propane furnace. The new doors have really helped cut down the cold air that was coming in.
All of these improvements are a great value. First, they save energy. Second, they increase the value of the house. And, best of all, they all qualify for tax credits on my U S federal taxes.
So what if you don't itemize? It doesn't make any difference. These are credits off your taxes, not deductions from your income. You can get them even if you take the standard deduction. Just get a copy of form 5695 - Residential Energy Credits. It is simple to fill out and only takes a few minutes.
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