Tax Credits for Energy Efficiency

Saturday, March 28, 2009

Tax Credits for Energy Efficiency

Image by thingermejig via Flickr

Credits For Energy Efficiency by Scott Miscall

If you want to start making your home more energy efficient with new appliances, windows or more, it does not have to cost you a lot of money. Did you know you can actually get tax credits for your qualifying purchase? That's right, on many products you can get "reimbursed" for 30% of the original cost of the product that was purchased.

Not only will you be able to save money right from the start on making these purchases, you will notice your energy bill will be much lower than it was. Many qualifying purchases are the Energy Star appliances which cut down your costs because these appliances use only a fraction of the energy normal appliances consume. Look for the Energy Star label on things such as windows and appliances, along with the Energy Guide labels that estimate how efficient the product is.

Consumers itemize these purchases on their income tax form, the tax credit will lower what they owe in taxes dollar-for-dollar. Many states also offer rebates to consumers with energy efficient homes. Be sure to check for your state's website for more information on these rebates. Do research on products before purchasing them to make sure they qualify. Make sure to keep your receipts so you can itemize these products on your taxes.

To qualify for the tax credit for home improvements, the product needs to be installed between January 2009 and December 2010. If you get windows or doors that are qualified for energy efficiency, you can get a federal tax credit from the United States government for 30% of your purchase, up to $1,500. This amount can also be applied to roofing, insulation, central air conditioning, oil furnaces, and water heaters.

If you buy a qualifying Geo-Thermal heat pump, there is not a cap on the amount spent. You will be getting back 30% of the price of the product. If you are looking into alternative energy such as solar panels or wind energy you can get the credit for 30% of the cost of the product.

Some examples of rebates you can look for in your state can be like Alaska, they are offering lower interest rates for mortgages on houses that you would purchase already energy efficient or if you need a loan to improve the energy efficiency of your house. In Arizona they will give you a rebate depending on how efficient your new air conditioning unit is. States like Colorado and Illinois and more offer rebates for purchasing energy efficient appliances through your utilities provider.

If you are thinking about improving your existing home or purchasing a new one that is more energy efficient, not only will it save you money in the long run of energy expenses, but make sure to check into rebates in your state. On top of that, make sure before purchasing new appliances, windows, or other upgrades that you check into how it can help with your income taxes. In order to save a substantial amount of money in your energy expenses, just make sure to do some research on the products and your rebates.

Learn how to go green! Let http://www.Green3Dhome.com show you how to reduce your energy consumption, make your home energy efficient and significantly contribute to improving the environment. Also, check out their green product directory and green building forum.

Article Source: http://EzineArticles.com/?expert=Scott_Miscall
http://EzineArticles.com/?Credits-For-Energy-Efficiency&id=2131194