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Efficiency Tax Credit

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According to Section 25C of The Energy Policy Act of 2005, homeowners could begin to receive a tax credit for the radiant barrier installation and many other home improvement projects.

A tax credit is generally more valuable than an equivalent tax deduction because a tax credit reduces tax dollar-for-dollar, while a deduction only removes a percentage of the tax that is owed. If you have any questions or we can assist you in any way, please contact A-Anderson Air Conditioning Heating & Electric at 469-556-9568.

Below you will find a summary of some of the tax credits available to you.

Radiant Barrier Installation:

Residential Tax Payers: You can receive a tax credit of 10% for the cost of material, if you are installing radiant barriers in 2007. The maximum amount you may receive is $500, in which residential applications of the attics, walls and crawl spaces may also qualify under President Bush's plan.

Commercial Tax Payers: Businesses may receive a tax credit of 30% of the total cost of material when radiant barrier material is applied in 2007.

Other Approved Home Improvement Projects Include:

Exterior Windows: 10% of the cost, up to $200. (Includes skylights and storm windows)

Roofs: 10% of the cost (but not the installation), up to $500. Includes seals to limit air infiltration, such as caulk, weather stripping, and foam sealants, as well as storm doors.

Exterior Windows: 10% of the cost, up to $200. Includes skylights and storm windows, Insulation, exterior doors, or pigmented metal.

Central Air Conditioner, Heat Pump, or Water Heater: up to $300 towards the full purchase price, including installation costs.

 

Furnace or Boiler: up to $150 towards the full purchase price, and/or $50 for an efficient air-circulating fan in a furnace, including installation cost.

Energy-Efficient Commercial building deduction: This addendum provides a tax deduction for energy-efficient commercial buildings that reduce annual energy and power consumption by 50% compared to the American Society of Heating, Refrigerating, and Air Conditioning Engineers (ASHRAE) 2001 standard.

The deduction would equal the cost of energy-efficient property installed during construction, with a maximum deduction of $1.80 per square foot of the building. Additionally, a partial deduction of 60 cents per square foot would be provided for building subsystems.

Click Here for Energy Star links to Federal Tax Credits for Energy Efficiency.

Below you will also find some provisions which must be followed in full compliance, in order for credit to be received:

  1. All improvements must be complete in or on the tax-payer primary residence in the United States. The credit cannot be applied against the Alternative Minimum Tax.
  2. In able to receive the credit a homeowner must also submit the IRS form 5695 upon filing their taxes. You must also keep receipts to verify the product was purchased and any type of manufacturers’ certification such as the "Energy Star" label.


If you have any questions regarding our services, feel free to contact,
A-Anderson Air Conditioning Heating & Electric at
                
469-556-9568.