At one point it would have sounded too good to be true - not anymore.  I'm sure you've heard all of the rave - now it's time to get the facts!  Will the Federal Government really reward you and your family for making high-efficiency improvements to your home?  YES!

FEDERAL TAX CREDIT DETAILS

How can this benefit me and my family?

This Federal Tax Credit allows homeowners to receive a tax credit for 30% of the installed costs up to $1500 on all high-efficiency improvements to their home.  This means in most cases you will actually be paying less for the more expensive, high-efficiency Heating & Cooling system than you will for a standard system.

Add the tax credit to current manufacturer's rebates and you will save even more!  -  All while reducing your annual energy bill by as much as 15-30%.   

How long will this Federal Tax Credit last?

Can I use this tax credit at more than one residence?

Qualifying improvements are limited to those made at a taxpayer's principle address.

Can I receive the maximum $1500 tax credit in 2009 and again in 2010?

No.  With the exceptions of geothermal heat pumps, solar water heaters, solar panels, fuel cells and windmills, $1500 is the maximum amount that can be claimed for high-efficiency improvements in 2009 AND 2010.

Do I need to obtain any information from the dealer for my records?

Yes.  Make sure you obtain a Manufacturer Certification Statement.  This document, which should be signed by the manufacturer, is used to certify that your product qualifies for the federal tax credit.  It is not necessary to submit a copy of this form with your 2009 tax return; however, buyers should keep a copy for their records.  You should also hang on to any receipts you receive.

Is there a form I should fill out with my 2009 taxes to obtain my credit?

Yes.  IRS Tax Form 5695 should be used to claim any improvements that you made to your home.  Improvements should be claimed on taxes for their year they were installed.   

If I am building a new home, do any high-efficiency improvements I make qualify for the tax credit?

Yes.  Geothermal heat pumps, photovoltaics, solar water heaters, small wind systems and fuel cells may qualify.  

Tax credits for windows, doors, insulation, roofs, HVAC or non-solar water heaters do not qualify for individuals installing them in a new home.