Winterizing Home Can Earn Tax Credits

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Winterizing Home Can Earn Tax Credits
November 1, 2009 - 8:41am

Winterizing your home can earn you a tax credit from the IRS.

Purchases of high-efficiency heating and air conditioning systems, water heaters and stoves that burn biomass qualify for the credit, including labor costs for installing the items, according to Jim Dupree, field media relations for the Internal Revenue Service.

The credits equal 30 percent of what the homeowner spends, up to a maximum of $1,500 for combined 2009-2010 tax years.

Other financial incentives exist as well, said Leah Crace-Jones, of Glory Energy Solutions in Boonsboro. In addition to saving on energy bills, homeowners can use state grants to buy solar energy systems, she said. Glory Energy Solutions primarily does energy audits of properties.

"It is very confusing," Crace-Jones said. "Montgomery County has an energy tax credit that can be applied to property tax, but Frederick County doesn't yet have that."

Skylights, energy-efficient windows, doors, qualifying insulation and certain roofing can earn tax credits, though the cost of installation on these items does not count, Dupree said.

Alternative energy equipment such as solar-powered electric systems, solar water heaters, geothermal heat pumps, wind turbines and fuel cells may also qualify.

Homeowners need to check the manufacturer's tax credit certification before buying or installing alternative energy items, Dupree said.

Glory Energy Solutions works with a network of firms that provide energy services from geothermal to insulation, Crace-Jones said.

"We did an audit of a bedroom over a garage for a client that was always cold. We found that insulation would be the solution and recommended one of the people in our network."

Customers seeking audits were slow to appear over the summer, Crace-Jones said, but their numbers picked up once the weather turned cooler. "I don't know if it was vacations or people just weren't concerned. The summer wasn't particularly hot either."

People look for comfort and health as much as energy savings in the home, she said. "They want to be comfortable more than concern for the electric bill."

A form for federal residential energy credits is available at irs.gov.

Copyright 2009 The Frederick News-Post. All rights reserved.

by Ed Waters Jr. @ The Frederick News-Post
Winterizing your home can earn you a tax credit from the IRS.

Purchases of high-efficiency heating and air conditioning systems, water heaters and stoves that burn biomass qualify for the credit, including labor costs for installing the items, according to Jim Dupree, field media relations for the Internal Revenue Service.

The credits equal 30 percent of what the homeowner spends, up to a maximum of $1,500 for combined 2009-2010 tax years.

Other financial incentives exist as well, said Leah Crace-Jones, of Glory Energy Solutions in Boonsboro. In addition to saving on energy bills, homeowners can use state grants to buy solar energy systems, she said. Glory Energy Solutions primarily does energy audits of properties.

"It is very confusing," Crace-Jones said. "Montgomery County has an energy tax credit that can be applied to property tax, but Frederick County doesn't yet have that."

Skylights, energy-efficient windows, doors, qualifying insulation and certain roofing can earn tax credits, though the cost of installation on these items does not count, Dupree said.

Alternative energy equipment such as solar-powered electric systems, solar water heaters, geothermal heat pumps, wind turbines and fuel cells may also qualify.

Homeowners need to check the manufacturer's tax credit certification before buying or installing alternative energy items, Dupree said.

Glory Energy Solutions works with a network of firms that provide energy services from geothermal to insulation, Crace-Jones said.

"We did an audit of a bedroom over a garage for a client that was always cold. We found that insulation would be the solution and recommended one of the people in our network."

Customers seeking audits were slow to appear over the summer, Crace-Jones said, but their numbers picked up once the weather turned cooler. "I don't know if it was vacations or people just weren't concerned. The summer wasn't particularly hot either."

People look for comfort and health as much as energy savings in the home, she said. "They want to be comfortable more than concern for the electric bill."

A form for federal residential energy credits is available at irs.gov.

Winterizing Home Can Earn Tax Credits - wtop.com