2009 Tax Credits for Home Improvement

by Mary Ann Romans | More from this Blogger

26 Jan 2009 09:15 AM

Tax credits for energy efficient home improvement projects are back again. This is good news for many of us who have older homes that need some improvement. Of course, there are no tax credits for last year (2008), which means that the insulation we put in over the family room attic will not qualify. However, since we aren't done yet with our energy efficient improvements, I am sure that we will be able to take advantage of this credit.

The bill was signed into law on October 3, 2008 by President Bush. It provides for tax credits for energy efficient home improvements made this year, including windows, doors, insulation, HVAC and non-solar water heaters. Biomass stoves and roofing are also included.

There is also a new tax credit for plug in hybrid electric vehicles that starts at $2,500 and is capped at $7,500.

The improvements must be placed in service anytime from January 1st 2009 through December 31st, 2009.

One thing to note about these tax credits, is that they are capped for the lifetime of the energy credit. In other words, if you took a tax credit for energy efficient improvements in 2006 or 2007, you have to deduct that from the maximum caps, which are $500 for most every area, with the exception of geothermal systems.

So, if you have been waiting on those energy efficient home improvement projects, thinking that you'll have to put them off until next year, you just got a great incentive to work toward them now. And with almost a year to go you can start making saving for these improvements a real possibility.

In our house, we definitely need a new door and new windows. We will make it a point to take care of at least one of these projects this year to gain the maximum tax credit for them.

To learn more about the tax credits, you can check out the Energy Star website. http://www.energystar.gov/index.cfm?c=products.pr_tax_credits#chart

Mary Ann Romans writes about everything related to saving money in the Frugal Blog, creating a home in the Home Blog, caring for little ones in the Baby Blog and now relationships in the Marriage Blog. You can read more of her articles by clicking here or subscribe to the blog using the subscription box on the right.

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Earn $500 to Improve Your Home

Learn more about Mary Ann Romans

Mary Ann Romans is a freelance writer, wife and mother of three children. She lives in Pennsylvania with her husband, the kids and a 16-pound cat.

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