making energy-saving improvements this fall can cut their winter
heating bills and lower their 2010 tax bill as well. The Nonbusiness
Energy Property Credit is 30% of eligible energy-saving improvements,
to a maximum tax credit of $1,500. This is a combined credit for 2009
and 2010 tax years.
Qualifying items include certain high-efficiency heating and air
conditioning systems, water heaters and stoves. These items, and the
instalatation cost are included in calculating the credit.
The cost of energy-efficient windows and skylights, energy-efficient
doors, qualifying insulation and certain roofs also qualify for the
credit. Unfortunately, the labor and installation cost is not included
for these items.
Note:The homeowner must spend at least $5,000
to get the full $1500 tax credit. Smaller expenditures get a smaller
Energy Efficient Property Credit.
Residential Energy Efficient Property Credit equals 30 percent of what
a homeowner spends on qualifying property such as solar electric
systems, solar hot water heaters, geothermal heat pumps, wind turbines,
and fuel cell property. Generally, labor costs are included when
figuring this credit. Also, except for fuel cell property,
no cap exists on the amount of credit available.
Approved improvements qualify!
should check the manufacturer’s tax credit certification
statement before purchasing or installing any of these improvements.
These certificates are usually posted on the manufacturer's web site.