Make Improvements on your Home and Save Money

We’ve all heard of energy credits before and many taxpayers took advantage of them for years. In 2008 when they were no longer available taxpayers were shocked. As one of the many provisions of the American Recovery and Reinvestment Act of 2009 energy credits are back and in full force.

There are a few too many changes and additions to the credits to speak of them all, but the IRS link at the end is a great source of information. The Residential Energy Property Credit makes items such as insulation, exterior doors and windows, and energy efficient heating and cooling systems eligible for tax breaks. Many of the standards of the old credit are sufficient for new purchases, also most products with the Energy Star label qualify. Items put into 2009 or 2010 all will qualify for these new energy credits.

The credit has been increased to 30% of cost of improvements, and increases the credit cap to $1,500. Many other energy credits were created such as a credit for energy equipment like geothermal heat pumps and wind turbines called the Residential Energy Efficient Property Credit. This break was increased to 30% of the cost of qualified property and the best part is they removed the cap. So there is no limit to the price of the property as long as it qualifies, you get up to 30% back. Talk about some great savings! Take the time and see if these and other energy credits are right for your tax situation.

Visit http://www.irs.gov/newsroom/article/0,,id=206875,00.html for more information.