Go Green, Get Paid
Available for the 2008 tax year is a credit for residential energy efficient property (REEP) that was purchased and used to provide energy to the taxpayer's home in 2008. The REEP credit also includes the cost of installation. The following items are eligible:
-- Solar panels - 30 percent of cost, up to $2,000
-- Geothermal heat pumps and solar water heaters - 30 percent of cost, up
to $2,000
-- Small wind energy property - 30 percent of cost, up to $4,000
-- Fuel cells - $500 for each half-kilowatt of capacity
"Home improvements are seen by many as an investment in the future value of the home," said Gil Charney, tax analyst with The Tax Institute at H&R Block. "However, by including these energy efficient changes, taxpayers can see their investment pay off much sooner."
For taxpayers considering home improvement projects now, know that recent legislative changes have extended, increased and expanded home energy credits for 2009 and beyond.
The REEP credit, listed above, has been extended through 2016 and, aside from fuel cell property, no longer has a maximum amount that may be claimed.
The nonbusiness energy property credit is available for 2009 and 2010. The credit is for 30 percent of the cost of external windows and doors, insulation, roofing, HVAC, non-solar water heaters and biomass stoves. The maximum lifetime credit is $1,500, and all products must meet specific energy guidelines to qualify.
All nonbusiness energy property credits must be used for a taxpayer's primary residence, and items must be in service between Jan. 1, 2009 and Dec. 31, 2010.
More information on energy efficient tax savings
In addition to home improvements, purchasing a new alternative fuel or plug-in electric car can also mean tax savings. The alternative fuel credit, which includes hybrid vehicles, is based on a formula determined by weight, fuel economy and technology. Taxpayers can claim up to $3,400 for the alternative fuel credit. The plug-in electric vehicle credit, determined by the capacity of the battery system, can be up to $7,500. Both credits are subject to a phase-out based on the amount of cars sold.
To see a complete listing of qualifying hybrid vehicles, visit www.digits.hrblock.com, and for more information on energy efficient tax savings, visit www.hrblock.com or call 1-800-HRBLOCK.
The Tax Institute, a division of H&R Block, is a national leader in providing unbiased research, analysis and interpretation of federal and state tax laws. Staffed by Enrolled Agents, CPAs, and Attorneys, The Tax Institute provides industry expertise for matters related to taxes and the professional tax preparation industry.
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For Further Information: Gene King 816.854.4672 Email Contact
SOURCE: H & R Block
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