A Little Help from our Government

A tax credit has been passed into law to allow us to claim up to $500.00 against our taxes for 2009 improvements, here are the details-

What energy-efficient home improvements are eligible?
The overall $500 cap can be reached in several ways with the purchase and installation of energy-efficient products:
Exterior windows: 10 percent of the total cost, up to $200. Includes skylights and storm windows. Insulation, exterior doors, or roofs: 10 percent of the cost of the product (but not the installation), up to $500. Includes seals to limit air infiltration, such as caulk, weather stripping, and foam sealants, as well as storm doors.
Central air conditioner, heat pump, water heater, or bio gas (e.g. corn) stove: up to $300 towards the full purchase price, including installation costs. Starting in 2009, geothermal heat pumps are instead eligible for a separate tax credit for 30 percent of the cost up to a maximum credit of $2,000-see Section 5 below.
Furnace or boiler: up to $150 towards the full purchase price, and/or $50 for an efficient air-circulating fan in a furnace, including installation cost.
In addition, to be eligible for the federal tax credits:
Windows, doors, and insulation must meet the requirements for your region of the 2001 or 2004 International Energy Conservation Code, a model energy code for buildings. All ENERGY STAR windows qualify.
Roofs must be metal with pigmented coatings or asphalt with cooling granules that meet ENERGY STAR requirements.
Heating and cooling equipment must meet stringent efficiency requirements - not even all ENERGY STAR products will qualify.
Also, windows, doors, insulation, and roofs must be expected to last at least five years (a two-year warranty is sufficient to demonstrate this). Manufacturers can certify (in packaging or on the company's web site) which of their products qualify for the tax credit. All the improvements must be installed in or on the taxpayer's principal residence in the United States. Condo and co-op improvements are apportioned to the owners. The credit cannot be taken against the Alternative Minimum Tax (AMT).
When are they available?
The home improvement tax credits apply for improvements "placed in service" from January 1, 2009, through December 31, 2009. They are not available in 2008, but mostly were available in 2006 and 2007. The IRS defines "placed in service" as when the products or materials are ready and available for use - this would generally refer to the installation, not the purchase.
What do I need to do to get the tax credit?
You will need to file IRS Form 5695 with your taxes. In addition, you will need to keep at least receipts proving that you purchased the improvements and a copy of the manufacturer's certification (or the ENERGY STAR label for windows).
Ask your accountant or tax advisor for further guidance.What energy-efficient home improvements are eligible?
The overall $500 cap can be reached in several ways with the purchase and installation of energy-efficient products:
Exterior windows: 10 percent of the total cost, up to $200. Includes skylights and storm windows. Insulation, exterior doors, or roofs: 10 percent of the cost of the product (but not the installation), up to $500. Includes seals to limit air infiltration, such as caulk, weather stripping, and foam sealants, as well as storm doors.
Central air conditioner, heat pump, water heater, or bio gas (e.g. corn) stove: up to $300 towards the full purchase price, including installation costs. Starting in 2009, geothermal heat pumps are instead eligible for a separate tax credit for 30 percent of the cost up to a maximum credit of $2,000-see Section 5 below.
Furnace or boiler: up to $150 towards the full purchase price, and/or $50 for an efficient air-circulating fan in a furnace, including installation cost.
In addition, to be eligible for the federal tax credits:
Windows, doors, and insulation must meet the requirements for your region of the 2001 or 2004 International Energy Conservation Code, a model energy code for buildings. All ENERGY STAR windows qualify.
Roofs must be metal with pigmented coatings or asphalt with cooling granules that meet ENERGY STAR requirements.
Heating and cooling equipment must meet stringent efficiency requirements - not even all ENERGY STAR products will qualify.
Also, windows, doors, insulation, and roofs must be expected to last at least five years (a two-year warranty is sufficient to demonstrate this). Manufacturers can certify (in packaging or on the company's web site) which of their products qualify for the tax credit. All the improvements must be installed in or on the taxpayer's principal residence in the United States. Condo and co-op improvements are apportioned to the owners. The credit cannot be taken against the Alternative Minimum Tax (AMT).
When are they available?
The home improvement tax credits apply for improvements "placed in service" from January 1, 2009, through December 31, 2009. They are not available in 2008, but mostly were available in 2006 and 2007. The IRS defines "placed in service" as when the products or materials are ready and available for use - this would generally refer to the installation, not the purchase.
What do I need to do to get the tax credit?
You will need to file IRS Form 5695 with your taxes. In addition, you will need to keep at least receipts proving that you purchased the improvements and a copy of the manufacturer's certification (or the ENERGY STAR label for windows).
Ask your accountant or tax advisor for further guidance.

I hope you can take advantage of this tax credit, every little bit helps! Enjoy!