Tax Man Giveth...and Taketh Away
This is kind of a good news, bad news entry. First...the bad news. It's tax day. I'm all for paying taxes, actually (when the money is spent for the public good) but it is never any fun. It's like going to the dentist. Fresh, clean teeth! And...that scrapey-thingy. You know.
Now, for the good news!!! (Especially for housebloggers.) We received our new "Home Sense" newsletter in the mail from our pals at Unique Heating and Cooling. Right on the front page...?
Congress passed legislation to give homeowners a tax break for saving energy in a bill called the Energy Policy Act.
The following improvements made to your home could qualify for you for tax credits if the improvements meet certain requirements:
- Insulation (10% of cost, not to exceed $500 of credit)
- New furnaces or boilers ($150 tax credit)
- Air conditioning systems or heat pumps ($300 tax credit)
- New water heater ($300 tax credit)
- Purchase for qualified photovoltaic property and for solar water heating property used exclusively for purposes other than heating swimming pools and hot tubs. (Credit equal to 30% of qualifying expenditures not to exceed $2000.)
- Exterior windows and skylights (10% of cost not to exceed $200 total)
- Exterior doors (10% of cost not to exceed $500 total)
- Metal roofing (10% of cost not to exceed $500 total)
We got really excited because we have actually completed work on FIVE of the items on this list. And then, we read on.
Improvements must be installed in or on the taxpayer’s principal residence in the United States. Home improvement tax credits apply for improvements made between January 1, 2006 and December 31, 2007.
Sob. All five improvements were made prior to January 1, 2006. GAH!
Well, no breaks for us. But some of you might be able to take advantage of some of these if you plan ahead.
Happy (ahem) Tax Day.
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Comments
We're hoping to take advantage of that next year with some window improvements, but I'm not sure if what we're doing will qualify. Have some research to do before next year's tax season!
Posted by: Pink | April 17, 2006 10:45 AM
we have a similar programme here in Canada- we've blogged about it and are participating in it. it's a great deal that's for sure! not only are you getting grants from the government for making the changes, but you're also helping to lower energy useage!
although in our programme (EnerGuide) there is no limit on each individual item, it's done on a rating system (like on the appliances). you have to choose the renos that will benefit you the most as well... energystar windows (rated 4.5- regular windows are about 1.5) cost much more than you'll get back, but insulating the attic and basement will give you a bigger grant with little money put in. by just changing our furnace from low to high effecientcy and insulating the basement we went from a 47 to 72 (out of 100)! then there's the air leakage...
Posted by: deb | April 17, 2006 1:20 PM
Thanks for the tips! We're looking for ways to reduce our tax bill for next year.
Posted by: Kristin | April 17, 2006 2:30 PM
Hey, don't complain. You get the "Grace" tax credit of $1000 for many years to come as well as the standard deduction for a dependent. Soon you will be members of the two house club!
Posted by: Gary | April 17, 2006 3:40 PM
Boy I wish that existed three years ago.
Posted by: becky | April 17, 2006 6:05 PM
We have a 100+ year old Italianate not far from you in western Cook county. We spent a small fortune on insulation for the walls (there was none).... LAST YEAR! Oh well. There's still lots to do, and there's always next year.
Posted by: Don | April 17, 2006 11:37 PM