Home Energy TuneUp Offers Energy Savings, Tax Savings, Greater Comfort
June 26, 2009 by Victor
Filed under Energy & Warranty Services
RIGHT NOW is the time to improve the energy features of your home. Right now through 2010, you can recover a great deal of your investment by:
• lowering your energy bills; and
• saving up to $1,500 on your tax bill.
The American Recovery and Reinvestment Act of 2009 allows tax credits for energy efficiency improvements. Homeowners may claim up to 30% of the costs of all home-energy-related equipment purchased during the aggregate two-year period of 2009 and 2010, up to $1,500 total.
Tax credits for installations made in 2006 and 2007 are still limited to the previous law’s $500 provision. Purchases made in 2008 are not eligible for this tax credit. But, the legislation certainly makes new improvements more affordable. We’ve included a partial list of eligible improvements for your consideration. And, in a moment, we’ll tell you how a Home Energy TuneUp Inspection by House Exam can help you decide which improvements will save you the most in utility costs and give you the greatest comfort in your home.
Eligible Improvements
Owners of existing homes receive a tax credit worth 30% of the cost of upgrading the efficiency of their home. The following improvements are some of those eligible for the tax credit:
• Insulation materials and systems
• Exterior doors and windows (including skylights)
• Roofs (metal and asphalt)
• Electric heat pumps
• Central air conditioners
• Natural gas, propane or oil water heaters
• Natural gas, propane or oil furnace or hot water boilers
• Electric heat pump water heaters
Performance and quality standards for tax credit eligibility vary by technology. You should check out the Energy Star web site for detailed information on qualifying products.
What is a Tax Credit?
There is an important difference between a tax credit and a tax deduction. A tax credit is subtracted directly from the total tax liability. In other words, whatever tax you would have owed gets reduced directly by the specific amount of the tax credit. On the other hand, a tax deduction is subtracted from income before total tax liability is computed. Maybe you’ve heard the expression “tax bracket.” It simply reflects the percentage of cost of an expense that actually gets deducted from your income before taxes. Bottom line: a tax credit is much more advantageous to you at tax time than a deduction.
At House Exam, we are certified Inspectors for the Home Energy TuneuP program. With this “audit” we take a full inventory of all the energy related features within your home, upload the data and generate a Report which can give you a detailed list of energy-saving improvements you should consider. The Report will list recommended upgrades and improvements, give you fair-market estimates for the costs for each improvement, tell you how much each improvement will save you annually, and tell you how long it will take to PAY FOR the improvements with the projected energy saving.
The money you will save from just the free recommendations within the Report, will more than pay for the cost of the inspection. Call to schedule your Home Energy TuneuP Inspection, and start your energy savings this month.
Call (817) 797-2461
Regarding the tax credit, do you still get the tax credit if you don’t OWE taxes when you’ve complted your tax return?
Hi, Gerri,
First, let’s be clear: it is not a good idea to take tax advise from someone who doesn’t DO taxes, and I DON”T do taxes. Second, you should be talking to an accountant or a professional tax preparer about these issues. Third, the BEST thing I can do for you and anyone else who is curious is take you directly to the Form you will need. Click here >> http://www.irs.gov/pub/irs-pdf/f5695.pdf and go get the Form from the “tax man” himself.
Are you still here? If you are still here, this is the closest I can come to addressing (not answering) your question. This is MY UNDERSTANDING of the way it works:
Tax credits are fairly straightforward. If you qualify and if you file, they send you a refund.
If you have already filed your return for 2009, ask your tax preparer if you need to file an Amended Return and send it in. If so, they will send you a check.
IF YOU OWE the IRS money, they will take it out of the check before they send the balance (unless you owe them more than they owe you).
If you have not filed your return, and have done what is required to qualify for the credit, your tax preparer can include the appropriate form as a part of the overall tax return, and the credit should be included in the mix. Refund if they owe you; less tax if you owe them.
Let me say this ONE MORE TIME: I don’t give tax advise, and I don’t do taxes, and your accountant or tax preparer might tell you that I don’t know what I’m talking about. So ask a tax professional. You might just get a bigger refund.
Thanks, Jeff,
I agree. Money back from Uncle Sam is great. And, until December 31, 2010, there is a 30% tax credit available for qualifying energy improvements to the home. The limit is $1,500, so that means that a home owner could conceivably spend $5,000 for qualifying improvements, and get a $1,500 reduction of tax owed, or refund balance. Talk to your accountant for specifics, but it’s definitely worth the conversation. And the utility savings and comfort improvement in your home is well worth it.