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Did You Know “Going Green” Can Save You Money On Your Taxes?

“Going green” isn’t only good for the environment. During 2009 and 2010, it’s good for your bank account too! Expanded or new tax credits contained in The American Recovery & Reinvestment Act of 2009 make it worth your while to consider upgrading your home’s old and inefficient energy systems to new and improved systems.

To listen to an audio description of the energy tax credits click here.

The following paragraphs describe which improvements qualify for the tax credits and are directly from the source - The Internal Revenue Service.

Residential Energy Property Credit (Section 1121): The new law increases the energy tax credit for homeowners who make energy efficient improvements to their existing homes. The new law increases the credit rate to 30 percent of the cost of all qualifying improvements and raises the maximum credit limit to $1,500 for improvements placed in service in 2009 and 2010.

The credit applies to improvements such as adding insulation, energy efficient exterior windows and energy-efficient heating and air conditioning systems.

A similar credit was available for 2007, but was not available in 2008. Homeowners should be aware that the standards in the new law are higher than the standards for the credit that was available in 2007 for products that qualify as “energy efficient” for purposes of this tax credit. The IRS has issued guidance that will allow manufacturers to certify that their products meet these new standards.

Residential Energy Efficient Property Credit (Section 1122): This nonrefundable energy tax credit will help individual taxpayers pay for qualified residential alternative energy equipment, such as solar hot water heaters, geothermal heat pumps and wind turbines. The new law removes some of the previously imposed maximum amounts and allows for a credit equal to 30 percent of the cost of qualified property. See Notice 09-41.

What is one of the first questions out of a buyer’s mouth when he walks toward a house? Usually, it’s something like, “Are those old windows?” And when he goes down into the basement? Unless it’s something about the basement smelling damp it is, “How old is the heater?”

Well, if you’re thinking of selling your house in the near future, what would be better than offering buyers a home with new energy efficient windows or heating and air conditioning systems?

On the other hand, if your plan is to stay in your current home, now may be a good time to make the upgrades and start saving on your energy bills sooner than later.

Either way, during 2009 and 2010 the government is offering tax credits for you to “go green” and now you know about it!

Craig & Gina Wiley REALTORS
Coldwell Banker Preferred Real Estate & Mortgage Company
390 Waterloo Blvd., Suite 101
Exton, PA 19341
Office 610-363-6006 ext 6066
Craig_Wiley@comcast.net
www.cbpref.com/cwiley

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