Energy Tax Credit Details For Waltham MA Real Estate Owners

Homeowners who make energy efficient repairs may be able to take advantage of tax credits. Credits directly reduce the amount of tax owed and will, as a result, save money. This blog offers energy tax credit details for Waltham MA real estate owners.

Tax Credit Options

The Wind, Solar, Geothermal and Fuel Cell Tax Credit

This tax credit can be used for existing homes and new construction, as long as it is used as principal residences. Investment properties do not qualify. Homeowners may receive a credit totaling 30 percent of the cost of improvements completed between January 1, 2011 and December 31, 2011.

The following items fall into this tax credit category:

  • Geothermal Heat Pumps
  • Solar Panels
  • Solar Water Heaters
  • Small Wind Energy Systems
  • Fuel Cells (up to $500 for each 0.5 kilowatt capacity; other limits apply)

Credit for Energy Improvements

This credit covers building components, insulation, windows, skylights, doors, roofs, air circulating fans, furnaces, and hot water boilers. Specific requirements apply, so check the tax laws prior to using the credit. There are dollar limits on certain upgrades such as windows. Only repairs to principle residences may be used and all items must have at least a 5 year lifespan. In general, homeowners can take a credit of ten percent of the purchase price up to five hundred dollars. Once a tax payer reaches the five hundred dollars mark, no additional amount may be applied in any tax year. This is an overall maximum and not an annual one.

Energy Tax Credit Details For Waltham MA Real Estate Owners

With all tax credits, hold on to receipts to confirm amounts. Also document the manufacturer and model number of all products as some have additional requirements under the tax laws. If you are uncertain of whether your purchases qualify for this credit or have a lot of credits in your tax return, think about using the services of a tax expert. Advanced energy tax credit details for Waltham MA real estate owners is offered at the Energy Star website. The details in this blog was prepared by Jeanne Umbrello at Wal-Lex Realty as is meant only as an introduction.