There are two different tax credits offered for homeowners who make energy efficient upgrades. Credits directly reduce the amount of tax owed and will, therefore, save money. This blog provides energy tax credit guidance for Florida home owners.
Two Different Tax Credits
The Wind, Solar, Geothermal and Fuel Cell Tax Credit
This tax credit is good for existing properties and new construction, only if used as principal residences. The credit is not valid for investment properties. Homeowners can receive a credit totaling 30 percent of the cost of repairs completed between January 1, 2011 and December 31, 2011.
The following items fall into this tax credit category:
- Geothermal Heat Pumps
- Solar Panels
- Solar Water Heaters
- Small Wind Energy Systems
- Fuel Cells (up to $500 for each 0.5 kilowatt capacity; other restrictions apply)
Credit for Energy Efficiency
This credit covers building components, insulation, windows, skylights, doors, roofs, air circulating fans, furnaces, and hot water boilers. Certain requirements apply, so look up the tax guidelines prior to using the credit. There are price restrictions on certain items such as windows. Only repairs to principle residences qualify and all items must have at least a 5 year lifespan. In general, the credit is for ten percent of the purchase price up to five hundred dollars total. Once the five hundred dollars is reached, no additional amount may be applied in any tax year. This is a lifetime limit and not an annual one.
Energy Tax Credit Guidance For Florida Home Owners
With all tax items, retain receipts to verify amounts. Also keep the manufacturer and model number of all items since some have specific requirements under the tax laws. If you are not sure about whether your purchases qualify for this credit or have many credits in your tax return, consider using a tax expert. More energy tax credit guidance for Florida home owners is offered at the Energy Star website. The details in this blog was prepared by Sonny Solomon at The Keyes Company as is meant only as an overview.
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