DO YOU KNOW WHAT THE NEW AND EXTENDED ENERGY EFFICIENCY PROVISIONS ARE?

These credits are a great way to make improvements on residential homes while reducing your income tax. These credits include, the Nonbusiness energy property credit and the Residential Energy Efficient Property Credit. The actual credit is set to expire however there is talk of extending it. The IRS suggest that taxpayers should act fast and take advantage of this credit.

 Insulation materials, exterior windows and doors, central air conditioners, natural gas, non solar heaters are just a few energy efficient items that will allow you to use 10% credit of cost. However, new construction and rentals do not qualify. This dollar for dollar tax credit is a long term benefit of reduced energy consumption.

 A credit that will expire December 31, 2016 is a part of the Residential Energy Efficient credit. This has to do with Solar energy systems. Which includes Solar heaters, solar water heaters, solar heat pumps, etc. This credit is used for new and existing homes, however it will not qualify for rental properties. Also apart of the Residential Energy Efficient credit is a fuel cell credit. This credit is provided for the acquisition of microturbine systems installed in new and existing homes.  

If you have any questions regarding Energy Efficiency taxes please call us for an appointment or go to our website at www.sykesaccounting.com

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