2010 Energy Tax Credit

People can now weatherize their homes and be rewarded for their efforts. According to the Internal Revenue Service, homeowners making energy-saving improvements this fall can cut their winter heating bills and lower their 2010 tax bill as well.
Last year’s Recovery Act expanded two home energy tax credits: the nonbusiness energy property credit and the residential energy efficient property credit.

Nonbusiness Energy Property Credit

This credit equals 30 percent of what a homeowner spends on eligible energy-saving improvements, up to a maximum tax credit of $1,500 for the combined 2009 and 2010 tax years. The cost of certain high-efficiency heating and air conditioning systems, water heaters and stoves that burn biomass all qualify, along with labor costs for installing these items. In addition, the cost of energy-efficient windows and skylights, energy-efficient doors, qualifying insulation and certain roofs also qualify for the credit, though the cost of installing these items does not count.

By spending as little as $5,000 before the end of the year on eligible energy-saving improvements, a homeowner can save as much as $1,500 on his or her 2010 federal income tax return. Due to limits based on tax liability, amounts spent on eligible energy-saving improvements in 2009, other credits claimed by a particular taxpayer and other factors, actual tax savings will vary. These tax savings are on top of any energy savings that may result.

Residential Energy Efficient Property Credit

Homeowners going green should also check out a second tax credit designed to spur investment in alternative energy equipment. The residential energy efficient property credit equals 30 percent of what a homeowner spends on qualifying property such as solar electric systems, solar hot water heaters, geothermal heat pumps, wind turbines, and fuel cell property. Generally, labor costs are included when figuring this credit. Also, except for fuel cell property, no cap exists on the amount of credit available.

Not all energy-efficient improvements qualify for these tax credits. For that reason, homeowners should check the manufacturer’s tax credit certification statement before purchasing or installing any of these improvements. The certification statement can usually be found on the manufacturer’s website or with the product packaging. Normally, a homeowner can rely on this certification.

The IRS cautions that the manufacturer’s certification is different from the Department of Energy’s Energy Star label, and not all Energy Star labeled products qualify for the tax credits.

Eligible homeowners can claim both of these credits when they file their 2010 federal income tax return. Because these are credits, not deductions, they increase a taxpayer’s refund or reduce the tax owed. An eligible taxpayer can claim these credits, regardless of whether he or she itemizes deductions on Schedule A. Use Form 5695, Residential Energy Credits, to figure and claim these credits.




http://www.irs.gov/newsroom/article/0,,id=231327,00.html

Home Performance with ENERGY STAR Program

Many existing homes in Wisconsin have problems related to moisture, condensation, drafty rooms, ice dams, mold, and high utility bills—which indicate the home may not have proper insulation, and/or is not at the level of safety, health, and comfort it could be.

Work with a consultant partnering with the Home Performance with ENERGY STAR Program help to identify the cause of those problems, and provide recommendations for getting them fixed. By completing a home evaluation you not only receive a more comfortable and energy efficient home, but you can receive Cash-Back Rewards for completing all or part of the work!

How it Works
Customers experiencing these common home performance problems select a partnering consultant who best meets their needs. Once a consultant is selected, they will visit the home and complete a comprehensive energy evaluation of the following areas:
Insulation and building shell
Air leakage
Mechanical equipment
Moisture and ventilation
Combustion safety and carbon monoxide
Once the evaluation is complete, you'll receive a written report of the findings and a list of recommended solutions. At this point, you have the option to do all or part of the work. Once that work is completed, your consultant will follow up with a post-performance evaluation and inspection to ensure the improvements are effective. Your consultant will complete all required paperwork to make sure you receive any applicable Cash-Back Rewards for the work you've done.

Here is the link to the site for more information:

http://www.focusonenergy.com/Default.aspx