Homeowners who make energy efficient improvements may be able to take advantage of tax credits. Credits directly reduce the tax owed and will, as a result, save money. This article offers energy tax credit overview for Staten Island NY real estate owners.
Types of Tax Credits
The Wind, Solar, Geothermal and Fuel Cell Tax Credit
This tax credit can be applied to existing properties and new construction, as long as it is used as principal residences. The credit is not valid for investment properties. Homeowners may apply a credit for 30% of the actual cost of repairs completed during the calendar year.
The items below qualify for the tax credit
Â â€¢Geothermal Heat Pumps
Â â€¢Solar Panels
â€¢Solar Water Heaters
Â â€¢Small Wind Energy Systems
Â â€¢Fuel Cells (up to $500 for each 0.5 kilowatt capacity; other restrictions apply)
Energy Efficiency Repairs
This credit covers building components, insulation, windows, skylights, doors, roofs, air circulating fans, furnaces, and hot water boilers. There are specific requirements for each item, so check the tax laws before applying the credit. There are maximum deductions on certain items such as windows. Only upgrades on principle residences may be used and all products must have at least a 5 year lifespan. In general, the credit is for ten percent of the purchase price up to a maximum of five hundred dollars. Once a tax payer reaches the five hundred dollars mark, no additional amount may be taken in any tax year. This is an overall limit and not a recurring one.
Energy Tax Credit Overview For Staten Island NY Real Estate Owners
With all tax credits, keep receipts to confirm amounts. Also keep the manufacturer and model number of all products as some have specific criteria under the tax laws. If you are uncertain of how to figure out this credit or have a lot of credits in your tax return, look into consulting with a tax preparer. Advanced energy tax credit overview for Staten Island NY real estate owners is offered at the Energy Star website. The information in this blog was prepared by Gregory Diaz and Gina Guerriero at S.I. Premiere Properties as is meant only as an introduction.