Click for full photo gallery: 10 Tax Breaks For Going Green In 2011
If you�re thinking of making energy-saving home improvements, do them now, and you might be able to save on your 2011 federal income tax bill next April. The $500 federal tax credit for energy-efficient home remodeling expires Dec. 31. �We�re saying, �This is it; go for it!�� says Ronnie Kweller, spokesperson for the Alliance to Save Energy in Washington, D.C.
The credit (it�s technically called the nonbusiness energy property credit) is like getting $500 off as it reduces your tax bill dollar for dollar�that�s better than a deduction. There�s a whole laundry list of basic home improvement projects that will get you a credit: adding insulation, new windows, air conditioning and heating equipment, hot water boilers, storm doors, even special-insulating window blinds (new Hunter Douglas ads� show a count-down clock��Just 31 Days Left��to buy and install honeycombs shades).
There are catches. The home improvements have to be �green� enough under various definitions of energy efficiency. For example, a boiler must have an annual fuel utilization efficiency rate of not less than�95. For details on what counts, the Alliance to Save Energy�s has a handy consumer tax guide here. Note: the work has to be done at your primary residence.
For 2011, the maximum credit is $500, calculated as a 10% credit on the first $5,000 you spend. There are sub limits too in 2011�for example, you can only take a $200 credit for windows. In 2009 and 2010, there was an enhanced credit, the potential savings tripled to a maximum $1,500, calculated as a 30% credit on the first $5,000 you spent (there were no stingy sublimits).
Another catch: you cannot take the 2011 $500 credit if you�ve already claimed $500 under the prior 2006/2007 or 2009/2010 versions of the home improvement c! redits. If the earlier claim was for less than $500, you can still claim the difference between the amount previously claimed and $500. You will need to file IRS Form 5696 with your taxes, and keep receipts for the improvements.
Will the credit be extended for 2012? �It�s very uncertain,� Kweller says woefully. The fear among energy-efficiency advocates is that there will be a repeat of the 2008 �black hole� when the credit lapsed. The credit first came to life in 2006 and 2007, established by the 2005 energy law. It lapsed for 2008. The stimulus resurrected it for 2009 and 2010 at triple the value, and the 2011 extension, back at the lower level, got hitched onto a catch-all tax extenders legislation at the last minute last December. The chances for the passage of a comprehensive tax package including expiring tax laws this month are grim.
In the meantime, �green� up your home for the holidays with Uncle Sam�s help, and enjoy energy savings in the New Year. For 10 tax breaks for going green in 2011, ranging from buying an electric car to going solar, see the slideshow here.
Related Articles:(MJGCF.PK, RLI, VLY, CEO) Notable Stock by DrStockPick.com
Taking a Walk on the Wildlife Side - SmartMoney.com
Tags: CNOOC ,Majestic Gold ,MJGCF.PK ,NYSE:CEO ,NYSE:RLI ,NYSE:VLY ,RLI ,Top Dividend Stocks 2012
No comments:
Post a Comment