Real Estate-Going Green can save you Green
Categories: Green Resources, In The News, Real Estate News, Smart Living
hiGoing green is not only cool, but it is also financially beneficial. Congress about tripled the tax credit for energy-efficient home improvements when it passed the latest stimulus package. Under the new stimulus package you can get up to $1500 in tax credits for making your home more energy efficient. Tax credits are now available for home improvements:
· must be “placed in service” from January 1, 2009 through December 31, 2010. (The IRS defines “placed in service” as when the property is ready and available for use)· must be for taxpayer’s principal residence, EXCEPT for geothermal heat pumps, solar water heaters, solar panels, and small wind energy systems (where second homes and rentals qualify)
· $1,500 is the maximum total amount that can be claimed for all products placed in service in 2009 & 2010 for most home improvements, EXCEPT for geothermal heat pumps, solar water heaters, solar panels, fuel cells, and small wind energy systems which are not subject to this cap, and are in effect through 2016
· must have a Manufacturer Certification Statement to qualify. (A Manufacturer’s Certification is a signed statement from the manufacturer certifying that the product or component qualifies for the tax credit. The IRS encourages manufacturers to provide these Certifications on their website to facilitate identification of qualified products. Taxpayers must keep a copy of the certification statement for their records, but do not have to submit a copy with their tax return.)
· improvements made in 2009 will be claimed on your 2009 taxes (filed by April 15, 2010) — use IRS Tax Form 5695 (2009 version) — it will be available late 2009 or early 2010
For more information go to http://www.energystar.gov/index.cfm?c=products.pr_tax_credits#c2. Go to this website as there are additional tax credits available for buying certain hybrid cars, plug in hybrids and many other energy saving measures. The great thing about these tax credits is that these improvements will continue to save you money even beyond the tax credit. So if you are not a tree hugger or if you don’t believe in Global Warming, don’t sweat it…do it for the money. You can save $1500 or more in your taxes and save on energy costs thereafter — it is definitely a win-win-win situation.
