Non-Business Energy Property Credit

Published on Tue, Sep 14, 2010 by in Blog



In reading the article Seven Facts About the Non-Business Energy Property Credit I was reminded of a potential credit for home owners.

There is a 30% tax credit available for all qualifying home improvements which are “energy efficient”.  The credit is limited to a maximum of $1,500.  This is a CREDIT instead of a deduction, which means it saves you up to $1,500 in taxes instead of deducting up to $1,500 off of your taxable income.

The credit applies to window replacement, insulation, etc., as long as the manufacturer meets government standards and provides a written statement to the homeowner certifying that the standards are being met.

This credit is only on improvements which go into service before January 1, 2011, therefore; time is of the essence.  If a homeowner is planning to make any upgrades in the near future to their principal residence, it would benefit you to complete the improvements before December 31, 2010.

I personally used this tax credit in 2009 for an elderly client.  She was able to receive the entire maximum $1,500 credit which effectively paid for 1/3 of the cost to replace windows which were in definite need of replacement.

The IRS does require that a form be filled out and sent in with your tax return for the year to apply for the credit.

NewStart Bookkeeping & Payroll can help you with any questions you may have about this tax credit and provide you with all your accounting needs.

Let’s talk about how we can help you. Call us today at 334-246-1164 or email us at [email protected]

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