The end of the tax year is getting closer and the Internal Revenue Service says you can earn a tax credit by improving the energy efficiency of your home. I.R.S. senior spokeswoman Michelle Eldridge says you need to make the improvements before the end of this year to take advantage on your 2009 tax return.
Eldridge says you can make simple improvements, such as purchasing insulation, or new windows and doors and claim up to $1,500 in a credit on your tax return. The credit is 30% of the cost of improvements up to a maximum of $1,500, so if you investment five-thousand dollars you could qualify for the maximum amount. Eldridge says there are a variety of energy-efficient products available for installation in your home.
She says the products have to be certified, and you can look on the product label, ask the retailer selling the product, or visit the manufacturers websites. Eldridge says the goal is to get people to invest some money now to save energy in the long run. Eldridge says for more information on products and the types of records you need to keep on your purchases, visit the I.R.S. website .
Eldridge says if you don’t have a need for energy efficiency improvements on your home, there is also a 30% credit for installing alternative energy equipment such as solar water heaters, geothermal heat pumps and wind turbines. While there is a cap on the insulation, window and door costs, there is not a cap on the alternative energy equipment credit.