Advantages Of Energy Tax Credits

Introduction

The Home Energy Tax Credits, also known as the home-improvement energy tax credits, was authorized by Congress in 2005. Its purpose is to encourage home owners to make improvements to their existing home that would increase their energy efficiency. To qualify the home must be your principal residence. The most popular improvements are new windows, insulating attics and basement, replacing old water heaters and furnaces as well as buying energy-efficient appliances.

History

Many changes have been made to the Home Energy Tax Credits since 2005. For any energy-efficient upgrades made between January 1, 2011 and December 31, 2011, the credit is 10% on qualifying products up to a maximum of $500. There are exceptions on certain improvements. For example, credits for renewable energy such as solar heat, hot water and geothermal remain at 30% of the cost, with no cap. You can find a list of qualifying purchases and amounts of the credit available on the Energy Star website.

Don’t forget the paper work. You need to have a Manufacturer Certification Statement for all qualifying improvements. You can get this from the store where you bought the supplies and products. If you used a contractor, you can get the certificates directly from them, or you can contact the manufacturer. You don’t have to send the Manufacturer Certification Statements when you apply for the tax credit, but you will need them if your income tax records are audited. Just file them away.

Features

The federal government is not the only one giving out energy tax credits. A large number of states and local governments are offering energy tax credits on top of the federal tax credits. Go on line to the Database for State Incentives for Renewable & Efficiency and you’ll find listings for energy tax credits and utility rebates. You’ll save money on taxes as well as energy costs.

Roofing materials provide protection to a home in all weather conditions. There are materials that help during rain, heat, and cold as the seasons change. There are a few choices when it comes to installing your roofing materials, for instance, shingles come in hybrid materials, which are designed to save energy. The government has decided to make some of the more eco-friendly materials for roofs, tax deductible as part of energy tax credits.

The amount of the tax deduction can vary each year. There are particular exemptions associated with the tax deduction that should be kept in mind. Roof coatings do not qualify for deduction, although the material may be attached to metal or asphalt. If the roof is flat, there are certain guidelines for the material, in order to be considered as energy tax credits.

Asphalt Roofing Materials

Certain versions of an asphalt roof are considered to be tax deductible. Some asphalt roof contains cooling granules, which allow for a lower energy bill due to less energy being consumed cooling your home. This particular asphalt roof is common in states with hotter climates. The houses that benefit from this type of roof are the homes that are not shaded by trees or other structures.

Metal Roofing Materials

A metal rooftop is one of the primary roofing materials that falls under tax deduction eligibility. There is more than one type of metal roofs; the tax-deductible roof has pigmented coatings that meet the Energy Star requirements. The pigmented coating is designed to reflect the sunlight and heat away from the home.

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