What gives me the most bang for my buck?

An update to our information about the Energy Tax Credit and how you can put it to work for you.

I asked my CPA, Mark Conrad of Knoll and Associates what you need to file the Energy Tax Credit. He shared this list of tips:

• There is a credit available of 30% of the cost of qualified purchases up to $1,500 for the years 2009 and 2010.
• $1,500 is the maximum amount that can be claimed for all products place in service in 2009 and 2010.
• To claim the credit, FORM 5695 is filed with your tax return.
• The manufacturer supplies the purchaser with a SIGNED CERTIFICATION STATEMENT that states the purchase qualifies for the credit.
• This certification does not need to be filed with your tax return, but it needs to be maintained in your records that support the deduction on your tax return.
• The purchases must be made for your own personal residences on existing homes – not new construction. (There are different credits available for new construction.)
• Some purchases that qualify for the credit include insulation, windows and doors, roofing, various forms of HVAC, water heaters and biomass stoves.  Most products that qualify are marked with and “Energy Star” sticker.
• Other credits are available for geo-thermal heat pumps, solar energy systems, fuel cells and cars.

This is really about getting a perk for adding value to your home with these upgrades. The tax credit, while not huge, is significant and is also on TOP of the energy savings you will receive with these upgrades.

Mark Conrad can help you understand these tax credits further. If you’re looking for a great CPA, you can reach him at mconrad@fuse.net.

If you’re interesting in making an upgrade before the end of 2009, I would be happy to introduce you to some great contractors I know. It’s important to do these upgrades right or you may not qualify for the credit. Below are examples of the categories for improvements, and some people you can call! Be sure to tell them you’ve worked with me.

Insulation: It is truly amazing what just $400 of insulation will do for the heating and cooling of your home all year long!  M&D Insulation

Windows/Doors: Gilkey Windows, ask for Eric Cone Gilkey ONLY makes windows that qualify for the energy tax credit and they have done so for more than 20 years.  Great service and warranty!

HVAC: I recently had a dual fuel furnace put in  at my home, offering electric heating until the temperature drops below 35 degrees, then my gas furnace steps in.  I increased my efficiency from 64% to 95% and saved more than $100 a month on my energy bills.  On top of that you can get the energy credit too!  It pays for itself in almost 2 years!  Arronco

To read more about the kinds of products that qualify, read our previous blog entry.

More info:

Energy Star Tax Credits

Related...

• February 8, 2010 -- Tax FYI: Energy Star Credit
• January 4, 2011 -- Our Favorite Blogs of 2010
• July 15, 2010 -- Tax Credit Closing Deadline Extended for Buyers Who Purchased by April 30
• April 6, 2010 -- Remaining Weeks of Homebuyer Tax Credit