Possible Tax Dollar Savings via the Energy Tax Incentives Act of 2005

If you are thinking about replacing doors, insulating or installing skylights? If you wait until the first of the year, Uncle Sam might assist you with tax credits, pursuant to the Energy Tax Incentives Act of 2005. This Act was created to provide homeowners tax credits for improvements made to a residence that increase energy efficiency.

All new windows will provide a homeowner with a maximum tax credit of $200. Doors, skylights, insulation, and metal roofs coated with heat-reducing pigments provide a credit of 10% of the cost up to a maximum of $500. The largest credit allows up to 30% of the cost or a maximum of a $2,000 credit for the equipment and installation of solar water heating, (heating of spas and swimming pools are exempt).

In addition to tax savings, the return on investment for making these improvements could save hundreds or possibly thousands of dollars in reduced utility bills, as well as increasing the value of your home. Additional information may be found @ the Home Energy Website.

As always, it is important to confirm any tax credits with a certified tax accountant. Should you need a CPA referral, please contact me via email at Phyllis@RealtorHarb.com, as I may be able to provide a great recommendation.