You’ve got until Dec. 31 to squeeze in those home improvements that qualify for tax credits. Not only is the government kicking in 30% of the costs up to $1,500, most improvements will pay for themselves over time in energy savings.
First, check to see if a professional audit is required to qualify for the tax credit in your state. Even if it isn’t, you still might want to do so in order to find out where most of your energy waste is occurring and then prioritize which projects would be most cost effective.
Qualifying and recommended replacements are insulation, windows, doors, furnaces, appliances, water heaters, roofs and heating, ventilating, and HVAC systems. But keep in mind that labor costs do not qualify for the credit.
Larger investments such as geothermal heat pumps, wind turbines, and solar energy systems qualifty for tax credits until 2016. These, too, will be credited at 30% of the cost but unlike the other credits they don’t have the $1500 cap. So it’s well worth looking into these while the tax credit incentives last.
Before running out to the store, be sure to refer to the EPA’s website for specific guidelines.
