The Tax Club Report

There has never been a better time to invest in the future of our kids, grandkids and great-grandkids than now. We are not talking about investing in some low risk bond, nor are we talking about starting a retirement plan or a college plan.. We are talking about investing in the future of our kids by investing in our own homes or vacation homes. We are sure you have either heard of energy-efficient appliances or you have seen the light blue Energy Star in appliances around your neighbors, family and friend’s homes. Too many home owners mistakenly believe they cannot afford to go green. What you don’t know is that you can actually receive a hefty amount of money from using these products and the best part is that you are saving the world while doing it. 

You may be thinking how can I save money replacing my windows? The answer is through Federal Tax Credits. As part of the US stimulus plan, there are a significant amount of generous tax breaks for everything from replacing doors to installing geothermal heating systems. Fixing up your home has never made so much economic sense.

So let us learn how to save the world and get money while doing it. The following appliances and or improvements will save you 30% of their cost up to $1,500. Let’s keep in mind that this Federal Tax Credit expires on December 31^, 2010. Hopefully, Congress will pass a new bill that extends this great benefit.

• Biomass Stoves
• Heating, Ventilating, Air Conditioning (HVAC)
• Insulation
• New Roofs (Metal or Asphalt)
• Water Heaters (non Solar)
• Windows & Doors.

I know you may be thinking bigger, like placing a solar energy system in your home, or a wind turbine system. What kind of credit do you receive then? Listed below you will see the improvements that can give you a credit of 30% of the cost with no upper limit. This means if the improvements costs $100,000, you will receive a credit for $30,000. This credit will expire on December 31, 2016.

• Geothermal Heat Pumps
• Small Wind Turbines
• Solar Energy Systems

(for more information on qualified  appliances and improvements please visit www.energystar.com)

It is important to note that a credit is better than a deduction because it decreases the amount owed in taxes dollar per dollar, while a deduction simply decreases the amount of income before taxes are calculated.

In addition to federal tax credits, it is important to note that some states also offer an additional green tax credit. While the federal government is allowed to operate with a budget deficit, in general, states are not, which is the reason your state might not offer this credit. Please visit www.dsireusa.org to find out if your state offers any benefits or not. Oregon deserves to be mentioned due to their substantial green tax credits offered to both homeowners and business. For additional information please don’t hesitate to contact The Tax Club.

Tags: Environment, Green Living, Tax Credits, the tax club

This entry was posted on Tuesday, December 22nd, 2009 at 1:15 pm and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.