Mulligan Windows, Siding & Roofing | News and Events

New Stimulus Bill Gives Tax Credits for Energy Efficient Home Improvements

You've been waiting for the perfect time to make some home improvements. That time is now.

On February 17, 2009, President Obama signed a stimulus bill, the American Recovery and Reinvestment Act, which made important changes to energy efficient tax credits. Here are some of the highlights:

  • Tax credits that were previously effective have been extended to 2010.
  • The tax credits have been raised from 10% to 30%.
  • Tax credits that were for a specific dollar amount have been converted to 30% of the cost.
  • The maximum credit has been raised from $500 to $1500 for both 2009 and 2010.
  • The $200 cap on windows has been removed.

It's important to note that the $1500 tax credit is not a deduction. Deductions are used to calculate your total taxable income. This new credit is much more than just a deduction. You can apply for a tax credit directly to the balance due the IRS on your tax return, or increase your fund. It doesn't matter whether your tax income is $20,000 or one million - you'll still receive the full $1500 reduction to your tax payment, or a $1500 increase in the amount of your refund.

To learn more about the Energy Improvement & Extension Act of 2008, visit www.energystar.gov for more info and IRS documents. Energy Star is a joint program of the U.S. Environmental Protection Agency and the U.S. Department of Energy to help Americans save money and protect the environment through energy efficient products.

IIn Michigan, starting in 2009, taxpayers are eligible for a tax credit for the purchase and installation of qualifying energy efficient home improvements, such as windows and installation. The credit amount is 10% of the installed cost of each improvement, up to 75% for single filers and $150 for joint filers. Income restrictions do apply.

For more info, go to www.dsireusa.org.

 

Mulligan Windows, Siding & Roofing | News and Events

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