Hot temps, cool credits

Scott Pinkowski, CPA

It’s another hot summer in the St. Louis area, which also means it’s home improvement time.  Something to remember when you’re in fix-it mode are those items  that might qualify for the energy saving tax credits listed below: 

The credit for energy efficient property is for 30% of the cost of the following:

 

            Solar Energy Systems (water heating and electricity)

            Fuel Cells

            Small Wind Energy Systems

            Geothermal Heat Pumps

 

IMPORTANT:

Items that do not qualify for the credit include energy efficient appliances.

 

There is also a credit available for 10% of the cost of certain specific energy property.

This credit is limited based on the type of property as follows:

$200 credit for exterior doors, exterior windows and skylights that meet or exceed the Energy Star program requirements

           $50 credit for each advance main air circulating fan,

           $150 credit for each natural gas, propane or oil furnace or hot water boiler, and a

 

            $300 credit for each of the following:

                                    Electric heat pump water heaters

                                    Electric heat pumps

                                    Biomass fuel stoves

                                    High-efficiency central air-conditioners

                                    Natural gas, propane or oil water heaters

 

IMPORTANT:

There is a $500 per taxpayer lifetime limit on this 10% credit, so if the full $500 has been claimed in a prior year(s), you are out of luck.

 

Please contact us if you have any questions about this topic.