Energy Efficiency Can Mean Lower Taxes
By Carole Feldman in ABC News, January 19 2010
Making energy efficient improvements to your home will do more than reduce your energy costs — they'll also reduce your tax bill.
The tax credit for energy-efficient windows or doors, air conditioners or furnaces, or other energy-saving improvements disappeared in 2008, but returned for 2009 and 2010 — at an even higher value. This is one case where procrastination paid off.
Under the American Recovery and Reinvestment Act of 2009, homeowners who made the improvements are eligible for a credit equal to 30 percent of the cost, up to a maximum credit of $1,500.
To get the maximum credit, a taxpayer would have to pay $5,000 on energy efficiency improvements. The previous maximum had been $500. The good news for homeowners is that they can claim the new credit even if they had taken the old one.