Energy Home Improvements Are Tax Deductible
Did you know that you can receive tax credits for a number of home improvements that increase the energy efficiency of your house?
Originally, these residential home improvement tax credits were set to expire in 2009.
Well, here’s some good news. These energy based tax credits have been extended through the end of 2010.
Energy Based Home Improvement Tax Credits
First established by congress and signed into law by President George Bush in 2005, the Energy Policy Act (EPACT) provides tax credits to individuals for a number of energy conservation home improvements.
The tax incentives offered are credits, not deductions. A tax deduction discounts the tax payer’s gross income which lowers the amount of income on which taxes must be paid. A tax credit differs from a tax deduction by directly reducing the amount of taxes owed rather than decreasing gross income. Most homeowners regard tax credits as more beneficial.
These energy conservation credits were initially set to expire in different years, with the first expiration dates starting in 2009. The American Recovery and Reinvestment Act of 2009 has extended many of the consumer energy tax incentives through the end of 2010.
Remember, always consult your accountant or tax specialist first to fully understand the specific tax benefit you might receive. The current tax laws are subject to change, and these various tax credits are scheduled to expire at different times. (more…)
