Double Savings: Save On Your Energy Bill And On Taxes
Posted byon June 03, 2009 at 06:45 PM EDT
Making your home more energy efficient is now an even better deal – thanks to expanded tax credits for energy efficient home improvements that were passed in the Recovery Act. This is a great concept: you get a discount through a tax credit on certain products now, and you save additionally down the road on energy costs as well.
Here’s how it works: you can get a tax break for installing energy-efficient technology - like windows, furnaces, air conditions, heat pumps, doors, insulation - of up to 30 percent of the product cost or up to the $1,500 maximum.
Savvy homeowners are taking advantage of this new incentive to go green. In an article in the Knoxville News Sentinel, Larry Cooper from West Knoxville recently explained:
"Our home's HVAC unit was 21 years old and we knew sooner or later it would go out. Rather than it giving out on us in the middle of the summer, we took a proactive step to take advantage of the tax rebate, save energy and replace it at a time that's convenient for us."
Approximately 30 percent of Mr. Cooper’s unit was paid for by the tax credit and because the system is about 25 percent more efficient on heating and cooling he will also save on his energy bills.
This is just one example of how the energy efficiency tax credits can help save middle class families money on energy bills and on taxes. About 21 percent of our country’s energy is used in residential homes -- around 75 percent of which could be made more energy efficient. The potential savings is substantial.
To be eligible for these tax credits save your receipts and the Manufacturer’s Certification Statement for your records when filing your 2010 taxes. Check out the details.
For additional information about home improvement tax credits, visit the Energy Department.
Terrell McSweeny is Domestic Policy Advisor for the Vice President.
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