Celebrate Earth Day with a Tax Credit

Spring brings thoughts of renewing our homes and gardens. Spring is also the time we celerate Earth Day. I was thinking of how Earth Day relates to Anchorage homeowners beyond recycling. I was also thinking about how green living is becoming increasingly important to the homeowners in terms of the resale value of their homes. These thoughts reminded me that the Federal government is offering to help homeowners go green while improving their homes with a tax credit. The American Reinvestment and Recovery Act is providing a tax credit of 30% ($1500 cap) for energy efficient home improvements.

Home Improvement Tax Credit Guidelines:
* The home improvements must be in operating condition or in use starting January 1 of this year and no later than December 31, 2010.
* The tax credit applies to the homeowner’s prinicipal residence only.
* The tax credit applies to all qualifing improvements made, not to each improvement separately.
* A Manufacturer Certification Statement is required. You do not have to submit a copy. However, you must have a copy on file.
* A receipt for the qualifing home improvement must be kept as well.
* The tax credit will be applied to 2009 tax filings (Tax Form 5695). Home Improvement Tax Credit Exceptions:
* Second homes and rental property are eligible for tax credits when geothermal heat pumps, small wind systems, solar water heaters or solar panels are installed.
* The Home improvement Tax Credit is available until 2016 for fuel cells, geothermal heat pumps, small wind systems, solar water heaters or solar panel systems.

Existing Home Qualifying Systems:
* Doors and Storm Doors - Not all ENERGY STAR doors will qualify.
* Windows, Storm Windows and/or Skylights - Not all ENERGY STAR labeled windows and skylights qualify for tax credit.
* Insulation
* Metal or Asphalt roofing
* Heating and Air systems - List of qualifying products: Consortium for Energy Efficiency product directory * Energy efficient water heaters - ENERGY STAR criteria for water heaters. A ll gas tankless water heaters qualify.
* Bio-mass stoves for household heating or water heating
* Geothermal Heat Pumps
* Small Wind Systems
* Solar Systems (water heaters or panels)
* Fuel Cells If you are planning to build your own home in the near future, there is a tax credit available to you as well.
* The tax credit is a no-cap 30% credit.
* The tax credit is available until 2016.
* The tax credit is limited to fuel cells, geothermal heat pumps, solar water heaters and small wind systems only.

For further details on how the tax credit works and what systems qualify, be sure to visit the Federal Tax Credits For Energy Efficiency website. There are two benefits to the tax credit program. The first, of course, is the tax credit benefit you receive on your 2009 tax filing. The second is that your home improvement will stimulate our local Anchorage economy with the purchases you make. So, go ahead Anchorage…celebrate Earth Day this year with a tax credit!