Subtract Energy Use, Add Savings

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O.K., so it’s still relatively warm out. The leaves are still green, and the crickets still chirp … along with those obnoxious cicadas. But that doesn’t mean the warm weather will last forever. The cold WILL find its way here sooner or later. Is your home ready? Could you use some new windows to help cut down on cold drafts? How about wall or attic insulation to keep the heat in? A more efficient furnace? And let’s not forget, these upgrades can also help keep the cooling in as well. It’s all about making your home more energy efficient for all seasons.

As a bonus for making your home more energy efficient, through the end of 2010, you can earn a federal tax credit(s). Yep, Uncle Sam will show his appreciation for you making your home more energy efficient by rewarding you with a little help on your taxes. Select products are eligible for tax credits at 30% of cost (some including installation) up to a maximum of $1,500. These products must be placed in service between January 1, 2009, and December 31, 2010, and must be added to an existing primary home only.

What products qualify for this federal help? These products are eligible for tax credits through 2010:

  • Electric heat pumps, furnaces and boilers, advanced main air circulating fans, central air conditioners.
  • Biomass stoves
  • Insulation material or systems specifically designed to reduce heat loss/gain
  • Metal or asphalt roofing
  • Water heaters (non solar): electric heat pump, natural gas, propane, oil
  • Exterior windows, doors and skylights; qualified storm doors/windows

But wait, there’s more! Additional items are eligible for tax credits through 2016:

  • Geothermal heat pumps, solar electric and solar water heating property, wind energy systems at 30% of cost (no upper limits)
  • Residential fuel cell systems at 30% of cost up to $500 per .5 kW power capacity

Not enough? You may be eligible for additional credits with state, local and/or utility incentives. Click here to check on your eligibility.

Be sure to save your receipts and manufacturer certification statements for your records. As it always is with tax situations, for the most up-to-date information, contact your tax professional.

If you’re in the market for some home updates, Vantage Credit Union has a great rate on HELOCs. Now’s the time to take on those home improvement projects and save some money on your taxes as well!