ENERGY TAX CREDITS: Energy is a hot topic these days. Everyone is concerned about how much we're using, how much we need, how our future demands are going to be met and how much is it going to cost. Energy, particularly electricity, is a vital part of our lives. It fuels our economy. Our businesses are tied to its being reliably available. We depend on it for light and air-conditioning and to run our homes. We are constantly using more. In fact, the amount of energy Americans use doubles about every 20 years, according to Alliant Energy.
The electric industry is working to expand the amount of power produced to meet this growing demand. But simply increasing energy supplies is not all that needs to be done. We need to find ways to use less energy.
With that in mind, Congress included a variety of tax credits in the Energy Policy Act of 2005 (EPAct) signed by President Bush on August 8, 2005. These credits offer individuals and businesses incentives to invest in energy-efficient appliances, products and vehicles. The tax credits became effective January 1, 2006, and most will remain in effect through 2007.
Here are some of the new tax credits as they apply to real estate:
The law provides for a one-time tax credit for up to $500 in total for installing efficient new windows, insulation, doors, roofs and heating and cooling equipment in your home. That $500 cap can be reached in several ways, with 10 percent of the cost of exterior windows, insulation, doors and roofs being allowed. Up to $300 for the purchase and installation of an efficient air conditioner, heat pump, or water heater may also be included, as can up to $150 toward the purchase of an efficient furnace.
Improvements must be installed in or on the taxpayer's principal residence in the United States. Home improvement tax credits apply to improvements made between January 1, 2006 and December 31, 2007.
It is important to know that each one of these credits comes with specific requirements. But, by following the guidelines, you as an individual consumer can save significant money, save some energy and improve your home.
For more information on the EPAct tax credits, visit www.energy.gov/taxbreaks.htm or talk to your tax consultant.
http://HomesInDurango.com
http://DurangoRealEstate.biz
No comments:
Post a Comment