Did you know there are home improvement projects that can serve as tax credits in the 2015 tax season? This may be the incentive you need to start those projects you have been meaning to get to, and take the sting out of having to go ahead and start certain projects that just cannot wait anymore.
Whatever your motivation, you have nothing to lose by getting busy this spring to take advantage of the tax credits, as well as the lower energy bills associated with your green upgrades.
Making your home greener will allow you to take advantage of one or both of the two main tax credits available to you.
The two Main Tax Credits Available in 2015 are the Non-Business Energy Property Credit, and the Residential Energy Efficient Property Credit. They both offer incentives to improve your home in different ways.
The Non-Business Energy Property Credit covers 10 percent of the cost of qualified energy-efficient improvements, up to $500. Whether or not you can claim the the actual installation expenses depends on the specific improvement or system.
The Residential Energy Efficient Property Credit covers 30 percent of the cost of qualified property, with no cap on the amount of credit available except for fuel cell property. You can also include most labor and installation costs.
Home Improvements That Count as Energy Tax Credits
- The installation and purchase of qualified geothermal heat pumps and solar water heaters.
- Adding insulation for greater energy efficiency.
- The purchase, but not the installation, of energy-efficient exterior windows and doors.
- Installing certain roofs that reduce energy costs in your home. The exact roof depends on your area of the country and weather conditions.
- Installing high-efficiency HVAC units and on-demand water heaters.
Making energy-saving improvements, installing an Earth-friendly energy source, or upgrading to certain energy-efficient appliances are all the types of improvements that may save you money, dollar for dollar on your 2015 tax return, as well as on your home energy costs indefinitely.
Be sure to save all receipts and the manufacturer’s tax credit certification statement. When tax time comes around, your tax credits should reduce the amount of tax owed. You can claim either of these credits whether or not you itemize deductions.
Start your next home improvement project by going to Mike Sikora’s Dayton Home Improvement showroom. Get inspired to not only improve your home, but to save on energy costs and taxes as well.