If you are looking for ways to reduce your tax burden, you are at the right place because here we tell you how your home will help you keep your hard earned money.
You might qualify for a number of tax credits if you often make upgrades in your home. (If you’re looking to maximize your refund, you can also find a quick guide to tax deductions and exemptions here.)
Below is the list of some important changes that you might consider very soon as they can help you get a tax break
- Solar & Other Alternative Energy Sources
If you’ve improved the energy efficiency of your home by installing any renewable energy sources, like Solar Panels, you could be eligible for tax credits to offset some of the costs. For instance, the Residential Energy Efficiency Property Credit offers a credit for installation of solar, wind, geothermal and fuel-cell technology.
- New Doors, Windows & Insulation
The Nobusiness Energy Property Credit provides a tax break for homeowners who make certain upgrades including insulation, exterior doors and windows.
- A New Roof
Installing a new roof can also get you a tax credit under the Nonbusiness Energy Property Credit. According to the IRS, it applies to “any metal roof with appropriate pigmented coatings or asphalt roof with appropriate cooling granules that are specifically and primarily designed to reduce the heat gain of your home.”
- New Air Conditioning & Water Heating Systems
The same goes for these home necessities. The Nonbusiness Energy Property Credit provides a tax break for a number of home upgrades involving energy efficiency. One can consult a tax professional who may be able to help you determine if specific projects in the aforementioned areas of your home qualify.
- Major Appliances
Tax credits for Energy Star appliances are largely no longer available, but if you bought a new refrigerator, washer and dryer, or other major appliance, you’ll want to check the Energy Star Rebate Finder for info on the rebates your local utility might provide. To find out about which retails near you participate in their programs, you can visit this website.
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