As we've covered before, homeowners can get $1,500 or more in tax credits for a host of improvements -- if the work is done in 2010. That means time is running out on getting paid from Uncle Sam to improve your insulation, get a high-efficiency furnace or fix those windows.
October was actually the 20th Anniversary of Energy Awareness Month. Marking the occasion, Consumer Reports recently published national survey results showing that 23% of Americans have upgraded to an energy-efficient heating or cooling system to help reduce their energy costs. Forty-four percent have purchased an Energy Star appliance.
Energy efficiency pays off, both for your family's finances and for the Earth.
To make it easier, here's a quick step-by-step guide for consumers on applying for the federal energy tax credit, courtesy of Trane heating and cooling specialists.
Talk to your local building supply or HVAC dealer to determine what products will qualify, or visit trane.com/taxcredit for a complete product listing for Train.
Consult a tax professional to ensure that the system qualifies, and find out what documents are needed. In the past, the IRS has directed taxpayers to use 2009 Form 5695 (Residential Energy Efficient Property Credit).
Purchase a tax-credit-qualified product or system.
Keep copies of invoices and receipts for documenting expenditures, in addition to any other documents as advised by a tax professional.
Obtain the certification statement for the new system (examples at trane.com/taxcredit).
Fill out IRS 2009 Form 5695 (Residential Energy Efficient Property Credit).
File your federal tax return and cash in on the energy tax credit up to a maximum of 30 percent of the installed price, or $1,500.
Note: While many tax credits are expiring at the end of this year, tax credits for clean, green geothermal heating and cooling systems extend for many more years. Check out the new book I cowrote on the topic, Geothermal HVAC.
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