
While most home improvement expenses do not have a tax impact in the year they are incurred, there are some significant exceptions, and those exceptions change each year. Read on to find out the latest in government tax credit programs.In 2009 and 2010 the Federal Government is allowing homeowners to deduct 30% of the cost (up to a total of $1,500) for certain energy efficient home improvement products on existing homes. That means you can spend up to $5,000 on products and get tax credit worth 30% of the cost, or $1,500.Here are the Simple Rules to Follow:o The items you purchase must be installed during 2009 or 2010, which means the tax credit can be claimed in April 2010 or 2011. o The items must be installed in your principal residence, not a rental or vacation home. o The items must have a Manufacturer Certification Statement to qualify. o Beware, because NOT ALL Energy Star rated products qualify. To find the list of what does, visit the government link included here. o You will use IRS form 5695 which allows individuals to claim credits for making their residences more energy-efficient. o Save your receipts and the Manufacturer Certification Statement.
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