Energy Efficiency Improvements

We’d like to revisit a topic we covered in Sept 2009 to update you on how making your home energy efficient could save you money in the form of a tax credit on your 2010 tax return.

If you missed out on the opportunity in 2009, this is still a good time to invest in energy-efficient upgrades.  Exterior windows, skylights, or doors with a U-factor of .30 or below are required for the credit.  Installation of a metal roof or asphalt roof with cooling granules designed to reduce heat gain, as well as any insulation material or system specifically designed to reduce heat loss or gain, also qualify for the credit.  If you install approved water heaters or heating and cooling systems that reduce energy consumption, you may receive a tax credit of up to 30 percent of the costs, up to a maximum of $1,500.

Before you make improvements please check with us to confirm if your eligible for the credit.  The 30 percent tax credit for the cost of energy-saving home improvements reverts to 10 percent after 2010, and is capped at $500.  The tax credit for 2010 is also limited if you claimed a credit in 2009.  Taxpayers should consider using a reputable contractor that is familiar with the 2000 IECC and the Energy Star criteria and specify in the contract compliance with the requirements.

If you have any questions or would like more information, please contact:

Loretta Manning
302-656-6632
LManning@CoverRossiter.com