Tax Day this year is April 18. You may have already filed, but it’s never too soon to start planning for 2011 taxes. This post is the third of a four part series on taxes and homeownership as you file your taxes for 2010 or plan for 2011.
Buying energy efficient products for your home or installing renewable energy systems not only saves money on utility bills, but it also might save you money on your tax bill. The U.S. Department of Energy is offering tax credits on energy efficient products and systems, some through 2011 and others through 2016. Here’s a quick rundown on the products:
Through 2011: Biomass stoves, HVAC, insulation, roofing, water heaters, windows, doors and skylights.
Through 2016: Geothermal heat pump, solar energy systems, wind energy systems, and fuel cells.
The credit varies by product, with many credits capped at $500. However, the solar and wind energy systems each have a credit for 30 percent of the purchase price with no limit. All credits for products through 2011 have to be used or installed in a primary residence, but many of the credits through 2016 can be on a secondary home. The tax form you need and other IRS information are easily found on the Internet.
Remember, these are just the federal credits you can get for energy efficient products. There are also state and local tax credits available. The tax credit needs to be taken in the year you bought the product, but it’s not too late to amend a past return. It’s not a bad idea to seek the help of a tax professional. LeaderOne is here to answer any questions you have about Austin Home Loans.