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.