Akron, OH, April 22, 2010 – With the 2009 tax year coming to an end, many homeowners are still unaware of the availability of tax credits through the American Recovery and Reinvestment Act of 2009. These tax credits are for homeowners interested in making energy efficient improvements to their primary residences. Even those familiar with the tax credits may not realize that they continue through the end of this year. Not only can these credits lower your tax liability, but they can also reduce your energy costs by up to 40% and provide for a cleaner environment according to the ACCA, Air Conditioning Contractors of America.
A tax credit is a huge incentive to individuals as it directly applies against a taxpayer’s liability, reducing the amount owed to the IRS on a dollar for dollar basis. Qualified purchases made in 2010 will need to be filed with your 2010 taxes. Make sure to check with your tax advisor on how these tax credits can help you reduce your liability.
Homeowners who install qualified furnaces, boilers, heat pumps, central air conditioners, and hot water heaters in 2009 or 2010 may claim a tax credit equal to 30% of the installed costs, up to $1500. (Note: Installed costs for HVAC and hot water equipment include equipment and labor.) Basically what this means to you is if you spend $5000 on one or more qualified energy-efficient products you can claim for a $1500 tax credit (30% of $5000 = $1500). You can find a list of qualified products by going to www.energystar.gov or check with your contractor/technician.
“Advancements in HVAC technology, energy efficiency, and performance in the last ten years means that the equipment you buy today can pay for itself in just a few years,” states Bill Blind, President of Blind & Sons, a local heating, cooling and plumbing company.
Homeowners who install qualified renewable energy efficient improvements, such as geothermal heat pumps, wind and solar energy systems, and fuel cell technologies to existing or new homes will qualify for a special tax credit equal to 30% of the installed costs with no dollar limit. This tax credit is available for the years 2009-2016 and these credits do not count against the $1500 tax credit limits.
If you filed for a tax credit in your 2009 taxes, but did not use the total $1500 credit you can still use the remaining balance on qualified improvements in 2010. In order to claim these tax credits, taxpayers will complete and file a Form 5695 with their regular tax return. They won’t need to submit any more information, but they will be required to keep copies of the certificates provided by the manufacturers or contractors on file.
If you weren’t aware of these tax credits or haven’t taken advantage of the full $1500 amount, consider the advantages of buying energy efficient products in 2010. There is no better time than the present to make energy efficient changes in your home. Until the end of this year you can take advantage of this great tax incentive, reduce your energy usage and lower your overall costs.
Blind & Sons
Blind & Sons is a family-owned business dedicated to providing total home comfort for their Northeast Ohio neighbors. Based in Barberton, Ohio, they have been in business since opening their doors in 1937. They are a full service company offering heating, cooling, indoor air quality, plumbing and electrical products and services to the communities in Northeast Ohio. For more information, visit their website at www.blindandsons.com.