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February 2010
Get up to $1500 from... the Government?
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By Paul Martin 
Tax Associate
Even though 2009 has passed, there is still plenty of time for individuals to take advantage of the U.S. government’s energy tax credits in 2010. Through 2010, individuals are entitled to a maximum $1,500 credit on their federal tax return for energy efficient home upgrades.
Individuals can benefit from installation of routine home improvements such as windows, doors, heating and cooling systems, and water heaters. As long as these improvements meet specified energy standards, individuals can receive a credit of 30% of the cost of the improvements, up to $1,500.
So what’s the catch?
The IRS has placed strict guidelines on the energy efficient products that qualify for the tax credit. Further, improvements must be purchased by the end of 2010. The credit is claimed on the 2010 tax return; it cannot be carried over into 2011. It is important to keep all receipts and to obtain a Manufacturer’s Certification Statement from the company that sold the energy efficient product.
There are several other stringent rules applicable to the tax credit that should be cleared with a tax professional before purchasing an energy efficient product. While the requirements are strict, the U.S. government’s $1,500 incentive to improve our homes is hard to pass up.
If you want to take advantage of the energy efficient tax credit and have questions about qualifying products or expenses, call Paul Martin or any of our tax professionals at 440-871-8288 or email pmartin@applegrowth.com.
Next month, we will take a look at ways for businesses to take advantage of energy efficient tax credits.
Resource: Energy Provisions of the American Recovery and Reinvestment Act of 2009 at IRS.gov
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