McCurdy Group - Insurance and Financial Consultants

Monday, March 8, 2010

Energy Credits Available on Your Tax Return

This year we have had several taxpayers taking advantage of the Energy Credit on their tax returns. There are several items that can qualify – furnaces, pellet stoves, insulation, windows and doors. When purchases are made, the company you buy them through provides the documentation that states they qualify for the energy credit. In the example of windows, they must be of a certain type to be energy efficient.

A couple items that do not qualify are appliances and siding. Appliances, although they are energy star rated, are not part of the energy credit. They may have rebates from their manufacturers though. In the case of siding – vinyl siding and even insulated vinyl siding do not qualify. Siding provides structural support for the house and therefore is not part of the credit program.

The good news is even higher income earners qualify for the 30% credit this year. The credit is not unlimited, there is a cap on the maximum credit per taxpayer still.

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