Energy upgrades may qualify for more tax breaks
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Homeowners who make energy-efficient upgrades may be eligible for expanded tax credits. From the Wall St. Journal:
I’m not among the one-in-nine homeowners who currently qualify for aid under the new federal housing-rescue plan. But Uncle Sam may still foot the bill for nearly $19,000 worth of upgrades at my house. And he could for you, too. Potentially lucrative new and expanded tax incentives for energy-efficient and renewable-energy home improvements may offer some consolation to homeowners who feel they are falling between the cracks with the government’s various economic stimulus efforts. They include up to $1,500 in tax credits for adding qualifying windows, doors, insulation, roofs, heating and cooling equipment, water heaters and even wood and pellet stoves to your house in 2009 and 2010. Perks for installing pricier solar technology, small wind-energy systems or a geothermal-well system include a tax credit of 30% of qualifying expenditures with no upper limit through 2016.
The story goes on to note that tax credits ‘lower your tax bill dollar-for-dollar, versus a tax deduction, which trims money off taxable income. The Internal Revenue Service is expected to issue firm guidelines on details of the credits soon, and consumers should consult tax professionals for clarity on filing.’
It’s hard to imagine putting a lot of money into home upgrades this year, with the economy and job situation so uncertain, and there have been tax incentives around for a while for solar, et al. California’s Million Solar Roofs Program, for example, which gives consumers subsidies for installing rooftop solar. Still, if you were planning on doing the work anyway, this could be yet another reason to hop to it.
-- Lauren Beale
Thoughts? Comments?
