“Going green” is not only great for the environment, but it also may result in hundreds, or even thousands, of dollars in savings for taxpayers. H&R Block points out several energy-related tax credits available for 2008 and more that have been added for 2009. Available for the 2008 tax year is a credit for residential energy efficient property (REEP) that was purchased and used to provide energy to the taxpayer’s home in 2008. The REEP credit also includes the cost of installation. The following items are eligible:
· Solar panels – 30 percent of cost, up to $2,000
· Geothermal heat pumps and solar water heaters – 30 percent of cost, up to $2,000
· Small wind energy property – 30 percent of cost, up to $4,000
· Fuel cells – $500 for each half-kilowatt of capacity
“Home improvements are seen by many as an investment in the future value of the home,” said Gil Charney, tax analyst with The Tax Institute at H&R Block. “However, by including these energy efficient changes, taxpayers can see their investment pay off much sooner.”
For taxpayers considering home improvement projects now, know that recent legislative changes have extended, increased and expanded home energy credits for 2009 and beyond. Read more.