What is an Energy Star tax credits?
The Energy Star tax credit for 2009/2010 is an outcropping of the American Recovery and Reinvestment Act. Yet as Americans are scrambling to save their homes from foreclosure, capped energy tax credits may go by the wayside with other little known tax credits. Does the Energy Star Tax Credit Deliver on Its Promises? Energy Star Tax Credit at EnergyStar.gov/TaxCredits Homeowners have the opportunity to enjoy ample Energy Star tax credit breaks. Federal tax credits for energy efficient home improvements are to provide incentives that entice consumers to invest in a number of green living, long term investments in their homes. Energy Star advises that these energy tax credits – conveniently enumerated at energystar.gov/taxcredits – encompass the installation of windows, doors, insulation, roofing, HVAC, non solar water heaters, and biomass stoves. These energy tax credits cover 30% of the upgrades’ cost – up to $1,500 – for the 2009 and 2010 tax years. The Downside of Energy Star Tax Cred
Making your home more energy efficient with ENERGY STAR can help to reduce high energy bills, improve comfort and help to protect the environment. Improving energy efficiency is also an important first step for homeowners interested in green remodeling. ENERGY STAR can guide you in making your home more efficient — whether you do-it-yourself or hire a qualified professional. To earn the ENERGY STAR, a home must meet strict guidelines for energy efficiency set by the U.S. Environmental Protection Agency. These homes are at least 15% more energy efficient than homes built to the 2004 International Residential Code (IRC), and include additional energy-saving features that typically make them 20–30% more efficient than standard homes. Sources: http://www.energystar.gov/index.cfm?c=tax_credits.
Today, most references to these tax credits are referring to The American Recovery and Reinvestment Act of 2009, which has extended and re-vamped previous energy initiatives. The benefits include funds for individuals, businesses, and local governments looking to make certain projects more “green.” To qualify for government money, each project must meet specific guidelines, generally including an “Energy Star” rating. According to their website, Energy Star is “a joint program of the U.S. Environmental Protection Agency and the U.S. Department of Energy helping us all save money and protect the environment through energy efficient products and practices.” Tax credits are generally more valuable than tax deductions because they reduce taxes dollar-for-dollar, instead of lowering the overall taxable income. Sources: http://www.wqad.com/news/wqad-energy-star-093009,0,4724102.
