Energy Credits
Here are seven things the IRS wants you to know about the
Nonbusiness Energy Property Credit:
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The new law increases the credit rate to 30 percent of the cost of all qualifying improvements and raises
the maximum credit limit to $1,500 claimed for 2009 and 2010 combined.
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The credit applies to improvements such as adding insulation, energy-efficient
exterior windows and energy-efficient heating and air conditioning
systems.
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To qualify as "energy efficient" for purposes of this tax credit, products generally
must meet higher standards than the standards for the credit that was available in
2007.
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Manufacturers must certify that their products meet new standards and they must
provide a written statement to the taxpayer such as with the packaging of the product or in a printable
format on the manufacturers' Website.
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Qualifying improvements must be placed into service after December 31, 2008, and
before January 1, 2011.
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The improvements must be made to the taxpayer's principal residence located in the
United States.
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To claim the credit, attach Form 5695, Residential Energy Credits to either the 2009 or
2010 tax return. Taxpayers must claim the credit on the tax return for the year that the improvements are
made.
Homeowners who have been considering some energy efficient home improvements may find these
tax credits will get them bigger tax savings next year.
For more information click on the links
below:
(source: IRS.gov web site)
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