Thousands of Dollars are available to homeowners under the new Federal Stimulus package, local utility rebate, NYSERDA Energy Star Program, and Manufacturer rebates!
Don't Miss Out!
Federal Tax Credits - Up to $1,500 tax credit on:
95% efficient furnaces & 90% efficient boilers & Tankless Water Heaters
NYSERDA/Energy Star - 10%-50% savings rebate on:
Higher efficient upgrades
What's the difference between a tax credit and a tax deduction?
A tax credit applies directly against the taxpayers' liability. A tax deduction applies against a taxpayer's income, lowering the adjusted gross income and possibly moving the taxpayer to a lower tax bracket. Tax credits have a greater benefit to a taxpayer that a tax deduction.
Can a homeowner claim $1500 in tax credits for improvements made in 2009, and then again claim tax credits for more improvements made in 2010?
No, taxpayers are eligible for a total of $1500 in tax credits for improvements made over the combined two year period from 2009 through 2010.
What happens if the 30% of the installed cost is less than the $1500 limit?
The homeowner can "bank" the remaining amount of the available tax credit towards the cost of other qualified improvements during the two year period. Any single item that the installed cost is more than $5000 will instantly reach the $1500 limit.
Does the HVAC tax credit apply to the cost of the equipment or equipment plus labor?
The tax credit applies to the installed cost of the equipment that qualifies for the tax credits, which includes labor for that specific installation.
What if a taxpayer had made claims for tax credits on improvements made during 2006 or 2007 tax years?
The "lifetime caps" that placed limits on the total tax credits available to any taxpayer have been removed. Any previous claims do not count against the current $1500 tax credit limit.
How do homeowners claim the credits and receive their money?
The IRS has directed taxpayers to use Form 5695, Residential Energy Efficient Property Credit. taxpayers should keep copies of invoices and receipts to document their actual expenditures, but only need to file Form 5695 with their tax returns to get the tax credits.
You should consult with a tax professional to see if you are eligible for the $1500 federal tax credit.