Wednesday, February 22, 2006

New Homeowner Tax Credit

Have you heard of it? The Energy Policy Act of 2005 (EPACT).

The U.S. Department of Energy website says it "offers consumers and businesses federal tax credits beginning in January 2006 for purchasing fuel-efficient hybrid-electric vehicles and energy-efficient appliances and products. Most of these tax credits remain in effect through 2007."

More specifically, with regard to the "Home Energy Efficiency Improvement Tax Credits" available:

"Consumers who purchase and install specific products, such as energy-efficient windows, insulation, doors, roofs, and heating and cooling equipment in the home can receive a tax credit of up to $500 beginning in January 2006.

"The EPACT also provides a credit equal to 30% of qualifying expenditures for purchase for qualified photovoltaic property and for solar water heating property used exclusively for purposes other than heating swimming pools and hot tubs. The credit shall not exceed $2000.

"Improvements must be installed in or on the taxpayer’s principal residence in the United States. Home improvement tax credits apply for improvements made between January 1, 2006 and December 31, 2007."

The U.S. Department of Energy also goes further to advise that "Some consumers will also be eligible for utility or state rebates, as well as state tax incentives for energy-efficient homes, vehicles and equipment. Each state’s energy office web site may have more information on specific state tax information."

To read more: The Energy Policy Act of 2005

As always, check with your tax advisor/financial advisor.

No comments: