| While most home improvement expenses do not have | | | | increased in strictness this year), and have a |
| a tax impact in the year they are incurred, there are | | | | Manufacturer's Certification Statement. A |
| some significant exceptions, and those exceptions | | | | Manufacturer's Certification is a signed statement from |
| change each year. Read on to find out the latest in | | | | the manufacturer certifying that the product or |
| government tax credit programs. | | | | component qualifies for the tax credit. The IRS |
| In 2009 and 2010 the Federal Government is allowing | | | | encourages manufacturers to provide these |
| homeowners to deduct 30% of the cost (up to a total | | | | Certifications on their website to facilitate identification |
| of $1,500) for certain energy efficient home | | | | of qualified products. Taxpayers must keep a copy of |
| improvement products on existing homes. That means | | | | the certification statement for their records, but do not |
| you can spend up to $5,000 on products and get tax | | | | have to submit a copy with their tax return. |
| credit worth 30% of the cost, or $1,500. | | | | Here is the list of home improvement items that |
| Here are the Simple Rules to Follow:o The items you | | | | qualify:o Windows and Doorso Insulationo Roofs (Metal |
| purchase must be installed during 2009 or 2010, which | | | | and Asphalt)o HVACo Water Heaters (non-solar)o |
| means the tax credit can be claimed in April 2010 or | | | | Biomass Stoves |
| 2011.o The items must be installed in your principal | | | | Installation Costso Installation costs are included in the |
| residence, not a rental or vacation home.o The items | | | | total item cost for HVAC, Water Heaters, and |
| must have a Manufacturer Certification Statement to | | | | Biomass Stoves.o Installation costs are NOT included |
| qualify.o Beware, because NOT ALL Energy Star | | | | for windows and doors, insulation and roofs. |
| rated products qualify. To find the list of what does, | | | | Even Bigger Tax Credits are Available |
| visit the government link included here.o You will use | | | | If you are planning a major remodel between now and |
| IRS form 5695 which allows individuals to claim credits | | | | 2016, the government is giving a tax credit on 30% of |
| for making their residences more energy-efficient.o | | | | the cost for certain energy efficient items with NO |
| Save your receipts and the Manufacturer Certification | | | | UPPER LIMIT. That means you can claim up to 30% |
| Statement. You will need them if you are audited. | | | | on expenses that total in the tens of thousands. The |
| What Qualifies for the $1,500 Tax Credit? | | | | other benefit is that these credits are available on new |
| The government is not allowing the tax credits unless | | | | home construction as well, not just existing homes. |
| the products meet certain energy criteria (which have | | | | |