If you want to start making your home more energy efficient with new appliances, windows, or more, it doesn’t have to cost you a lot of money. Did you know that you can actually get a tax credit for your qualifying purchase? That’s right, for many products you can be “reimbursed” for 30% of the original cost of the product that was purchased. Not only will you be able to save money up front when making these purchases, but you will also notice that your energy bill will be much lower than it was. Many qualifying purchases are Energy Star appliances that lower your costs because these appliances use only a fraction of the energy that normal appliances consume. Look for the Energy Star label on things like windows and appliances, along with the Energy Guide labels that estimate the efficiency of the product.
Consumers itemize these purchases on their income tax form, the tax credit will reduce what they owe in taxes dollar for dollar. Many states also offer rebates to consumers with energy efficient homes. Be sure to check your state’s website for more information on these rebates. Do your research on products before you buy to make sure they qualify. Be sure to save your receipts so you can itemize these products on your taxes.
To qualify for the home improvement tax credit, the product must be installed between January 2009 and December 2010. If you get energy efficient windows or doors, you can get a United States government federal tax credit for 30% of your purchase, up to $ 1,500. This amount can also be applied to roofing, insulation, central air conditioning, oil furnaces, and water heaters. If you purchase an eligible geothermal heat pump, there is no limit on the amount spent. You will get back 30% of the price of the product. If you are looking for alternative energy, such as solar panels or wind power, you can get the credit for 30% of the cost of the product.
Some examples of repayments you can look for in your state might be like Alaska, which offers lower interest rates for mortgages on homes you would buy that are already energy efficient or if you need a loan to improve the energy efficiency of your home. In Arizona they will give you a refund depending on how efficient your new air conditioning unit is. States like Colorado and Illinois and more offer rebates for purchasing energy efficient appliances through your utility provider.
If you are considering upgrading your existing home or buying a new one that is more energy efficient, not only will it save you money in the long run on energy costs, but be sure to check the rebates in your state. On top of that, before you buy new appliances, windows, or other upgrades, be sure to check out how it can help you with your income taxes. To save a substantial amount of money on your energy costs, just be sure to do a little research on the products and their rebates.