Better hurry if you plan on cashing in on several green tax breaks. As of December 31st, many Green tax breaks will be ending.
The Energy Tax Incentives Act of 2005 allowed homeowners to take a one-time tax credit of up to $500 for doing things like installing new efficient windows, insulation and heating and cooling equipment in their homes.
But as part of the deal-making to get it signed, the short-term provision was written in.
To qualify for the credits, the upgrades must meet government-approved Energy Star requirements. The rub? Not all Energy Star products qualify.
Home improvement tax credits are available for:
• Insulation and exterior doors, including storm doors: 10 percent of the cost of the product — but not the installation — up to $500. Includes caulk, weather stripping, and foam sealants.
• Central air conditioner, heat pump, or water heater: Up to $300 toward the purchase price, including installation costs.
• Exterior windows, skylights and storm windows: 10 percent of the total cost, up to $200. All windows with the Energy Star label qualify.
• Pigmented metal roofs: 10 percent of the cost of the product, but not the installation, up to $500 for metal roofs with pigmented coatings that meet Energy Star requirements.
• Furnace or boiler: Up to $150 toward the purchase price, and/or $50 for an efficient air-circulating fan in a furnace, including installation cost.
(Source: Alliance to Save Energy)
Given the nature of these laws, we may not see another one like it again. But, it’s also possible that better, or more broad-based incentives will be available in the future.
No matter what, even if consumers can’t make changes in time to get tax credits, each will always be worth the energy savings.