Energy Tax Credit Info

In case you haven’t heard, there is an energy tax credit available to those who add renewable energy sources to their homes. Yes, these features can take some money upfront, when you first buy them, but after that, they’ll typically save you money in the form of reduced heating and cooling bills. Plus, if you take advantage of the energy tax credit, you’ll see some money savings there too.  

Before you start banking on cashing in on this credit, however, be aware that only certain home improvements qualify for the credit. So, if you want to ensure you get the credit, speak with your accountant and/or tax adviser before buying anything or making any home improvements. That way, you’ll be sure to make improvements that qualify for the credit. You can also increase your chances of successfully securing the energy tax credit by following these simple tips.

Tip #1: Get Proof

First things first, don’t shell out money for anything- be it a product or a service- without knowing that you can get documentable proof of it. You need proof of your payment, like a receipt, as well as proof of the fact that the product/service qualifies you for the credit. As long as you have these things, you shouldn’t have a hard time getting your credit OR getting it in the maximum amount possible.

Tip #2: Look to State Credits

While getting the federal credit is definitely nice, did you know that, in some states, there are also state level credits available for certain “green” home improvements?

Research laws in your state and talk to your accountant to see what options you have for qualifying for state-level credits as well. In some cases, you may even be able to get both state and federal credits, which would truly double your money!

Remember, educating yourself and having a good accountant and/or tax advisor on your side are definitely key to qualifying for this great credit and saving yourself some money both now and in the long-run.