Fiscal Cliff Bill Offers Energy Tax Credits

If your home needs sprucing up, there’s a catch-all $500 tax credit in the fiscal cliff deal that could help blunt the cost of a remodel. Technically the tax break is called the non-business energy property tax credit. 
 "Energy efficiency is the best kept investment secret for double digit tax-free returns, and the byproducts are improved comfort and safety, and insulation fom some of the effects of the fiscal cliff. Insulation and air sealing has a payback period of less than one year. Mechanical upgrades such as high efficiency furnaces, air conditioners, and water heaters typically have a payback period of less than ten years with rates of return sometimes in excess of 20%. When coupled with state tax incentives and rebates from many utilities, energy upgrades make more sense now than ever before. What many people fail to realize is that when these investments start to pay off in terms of lower bills and more money in your pocket every month, that monetary return is the equivalent of a tax free return. Perhaps instead of maxing out your IRA contribution this year you might want to get an energy audit and consider adding more attic insulation and replacing that old inefficient furnace."  by
 Tax credits for energy-efficiency home improvements.  This benefit provides tax credits of $200 to $500 for owners who install energy-efficient windows, insulation, high efficiency heat and air and other upgrades designed to cut energy consumption. The bill covers improvements made during 2012 and 2013.

The credit is 10% of the cost of the building materials (labor excluded) for insulation, exterior windows and doors that meet Energy Star requirements, and roofs (metal roofs with pigmented coating, or asphalt roofs with cooling granules). So if the cost is $5,000, you get the full $500 credit, except for windows, which have a sublimit of $200. Also eligible towards the $500 maximum credit are: central air conditioners ($300), heat pumps ($300), furnaces ($150) and even corn-fueled stoves ($300).

A tax credit reduces your tax bill dollar for dollar, so you’re basically getting $500 towards your remodel of $5,000 or more courtesy of Uncle Sam. You claim it on Form 5696 when you file your tax return.

Surgi's now installs insulation at the time of system installation so you can take advantage of credits for both air conditioning and heating plus insulation all in one stop.

Need a new system?  Surgi's can help.  Need a healthier, more comfortable life?  We can change the way you feel about your home. 
Call 469-4232 for a free estimate today!
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