Wednesday, November 17, 2010

Non-business Energy Property Credit

Use it before it is gone: A 30 percent credit of what a homeowner spends on eligible energy-saving improvements, up to a maximum tax credit of $1,500 for the combined 2009 and 2010 tax years. The cost of certain high-efficiency heating and air conditioning systems, water heaters and stoves that burn biomass all qualify, along with labor costs for installing these items. In addition, the cost of energy-efficient windows and skylights, energy-efficient doors, qualifying insulation and certain roofs also qualify for the credit, though the cost of installing these items does not count.

By spending as little as $5,000 before the end of the year, on eligible energy-saving improvements, you can save as much as $1,500 on their 2010 federal income tax return, if you did not use the credit in 2009.

Written by Joan Campbell, CPA

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