Thinking of buying new windows or installing central air? The new economic stimulus plan offers some financial help in terms of affordability.
30% Tax Credit on Eligible Energy Saving Materials
This credit has been around for a few years but it has typically been limited to a maximum credit of $500. The new stimulus plan has increased the maximum credit to 30% of the cost of installing certain energy saving materials or $1500, whichever is smaller. Here is a list of things that qualify for the 30% credit:
- Storm Windows
- Central Air Conditioners
- Water Heaters
- Other Energy Improvements
Of course the IRS and the Government had to put ‘other energy improvements’ into the bill. Don’t ask me what that means because I have no idea.
So, if you were holding back on purchasing new windows or that much needed central air, this new credit may help speed up your decision. I know my mother has been holding off on purchasing windows and this new credit may just encourage her to go ahead and purchase them. The credit will be for purchases in 2009 and 2010.
If the cost of the windows are $5000 for the whole house, you can get a credit of $750 on your 2009 tax return. That’s like getting a 30% discount on your window purchase. Combine the 30% tax credit with your ability to get a good deal and you can turn this purchase into a GREAT deal!
Will this new credit encourage you to purchase any of these items?