I have been doing some research while preparing my taxes and found some information I thought was worth passing along.
Here is a great article I found about tax savings on green upgrades to your home. Some of them are a little costly, but I know home improvement comes around sometimes whether we want it to or not and there are some interesting things to keep in mind.
Green Tax Savings: $500 Energy Tax Credits for Upgrade to Your Primary Residence
Certain eco-friendly upgrades to your home can qualify for federal tax credits through the end of this year. A credit is much more valuable to you than a standard tax deduction. A credit is a dollar for dollar reduction in your tax bill. A deduction’s value is based on your marginal tax bracket. For example, a $500 tax credit reduces your taxable income by $500. A $500 tax deduction for someone in the highest income tax bracket of 35% is only worth $175 ($500 x .35)
The maximum lifetime energy credit you can claim for upgrades to your primary residence is $500 total. Among the energy-efficient upgrades that qualify for the credit are:
New windows, storm windows, sky lights: credit on 10% of the cost up to $200 total for all windows.
New Exterior doors: credit on 10% of the cost up to $500.
Metal roofs: 10% of the cost up to $500.
Insulation. Credit on 10% of the cost up to $500.
Central air/heating: $300 credit.
New Furnace: $150.
Geo-Thermal Heat Pump: $300.
New Water Heater: $300
So keep these things in mind while doing home upgrades.
Have a great day,
Karen Pore
http://www.green4yourfamily.com/
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