Save Taxes by Saving Energy
Is your home especially cold in the winter and unbearably hot in the summer? Maybe it needs an energy makeover. Thanks to changes in the tax law, the federal government will help pay the cost of making your home more energy efficient. You can save as much as $1500 in taxes by installing certain energy-saving products in your home in 2009 and 2010. For example, you could install new skylights, ceiling fans, a furnace, or energy efficient doors and windows. So how does this work? The government gives you a tax credit worth 30 percent of what you spend on certain products. If you spend $5000 on new windows, for example, youd qualify for the full $1500 credit. And that credit reduces your tax bill or increases your refund dollar for dollar. Think of it this way: the government is giving you money to help you save energy. And that helps you save money, too. There are just a few simple rules: The products you buy must meet certain energy-saving standards. Go to energystar.gov for more information. Also, the improvement must be to your main home, not a rental or vacation home. Finally, the $1500 limit is for 2009 and 2010 combined, NOT per year.
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