This is the eighth in a 12-part series of weekly posts on the 2009 Home Owner Tax Credit. To see all the posts in this series, click here.
If you’re looking for additional ways to save the environment and use the earth, wind and sun to save you big money on utility bills, you may want to consider upgrading your household power by using renewable energy – and you’ll get a nice tax credit too!
Renewable Energy in Your Home
There are three types of renewable energies you can upgrade to, which will qualify for a tax credit:
- · Geothermal heat pumps
- · Small wind turbines
- · Solar energy
Energy Star geothermal heat pumps qualify for the tax credit. This is just like a normal heat pump but instead of taking heat from the outside air, it takes it from the earth. For air conditioning, it pulls heat out of your home and puts it into the ground.
Wind power turbines take wind and turn it into electricity. It is strong enough to power anything that uses regular electricity in your home.
Solar panels you place on your roof take the sun’s rays and convert it into energy. This energy goes into an electrical system, which then powers your home.
Tax Credit for Renewable Energy
There is no limit to the amount of tax credit you can get with renewable energy upgrades. You claim 30 percent of the unit’s cost and then any labor cost.
As long as the unit powers at least half of your home, you can claim it on your tax return. It also has to be in your principal residence. To claim it, simply fill out IRS Form 5695 (Residential Energy Credits Form) and submit it with your regular 1040 tax form.
You can find out more and download a free guide to tax credit information by clicking the following link:
Home Owners Tax Credit Guide-HS-1
Photo: // Wayne National Forest
