Princeton Town Topics – February 15, 2012
GREEN TAX CREDITS
There’s still time to take advantage of some of the “green home” tax credits that were covered by Congress’ tax-cut bill extension in 2011. Even though many of last year’s “green” tax credits expired on December 31st, homeowners can get credit for much of their energy efficient home improvement purchases made before then, when they file their tax returns this April.
Different products have their own spending cap. For example, you can claim 10% of total expenditures (up to $500) on energy efficient windows, a new water heater, insulation or a new roof.
Some improvements, like solar energy systems and geothermal heat pumps, have no cap. You can claim 30% on total cost of these products, and the good news is they will be covered until the end of 2016.
These credits only apply to improvements done on your primary residence. So if you made any energy efficient upgrades last year, it’s worth checking out www.energystar.gov to see if you qualify for a tax break.