The Clock is Ticking on Certain Federal Saving Energy Saving Tax Credits for Homeowners; Connecticut Rebates
Many Federal energy tax credits for home improvements like replacing older furnaces and air conditioning units with new, Energy Star-rated products will expire at the end of 2010. If your plans for your principle residence or second home include replacing older heating and cooling mechanicals, or other improvements such as a new roof or replacement doors and windows, 2010 might be a good time to do the project.
In general, the Federal tax benefit comes in the form of 30% of the first $5,000 – in other words up to $1,500 – as a non-refundable tax credit. “Non-refundable” just means that your tax bill before the energy credit must be at least $1,500 to get the full benefit – it reduces taxes owed but cannot by itself create a refund.
In addition, in Connecticut there is a $500 credit available from the State for replacing an older, less-efficient furnace or A/C unit with a new, energy efficient one.
Finally, the CT electric companies are offering an additional $500 credit for many of the same upgrades. This $500 can be doubled to $1,000 if you first have an Energy Audit performed by your electric company and then the actual replacement if performed within 45 days, so there is some coordination required regarding the timing. The Energy Audit itself costs $75.
Net-net, if your situation meets the guidelines and the audit and replacement are done within 45 days of each other, you can save up to $2,925 on the project.
Worthwhile tidbits: Tthe labor costs of replacing a roof cannot be included – only the material itself, but installation costs of a replacement furnace or central AC unit CAN be included when calculating the Federal credit total.
For more information see:
