How the 2009-2010 Home Improvement Tax Credits Can Apply To You

October 20, 2009

Many of us have heard about the Home Improvement Tax Credits that are part of 2009/2010 stimulus package. Yet maybe you’re not sure if the tax credit can apply to you or your home.

We’re happy to help you navigate how you can add value to your home, save on your monthly energy bill, as well as help conserve our energy resources. That’s a win-win for your pocketbook, as well as the environment, when you upgrade your windows, siding, roofing, or insulation.

Candy Bishop-Conlon, Accountant of Bishop & Associates in Marblehead, explains the details for us. The 2009/2010 Home Improvement Tax Credit applies to the same items allowed in the 2007 tax credit for Home Improvements (no credit was allowed in 2008), but for 2009/2010 it is a bit more generous.

  • For 2009/2010, there is a 30% tax credit for energy efficient doors, windows, insulation, air conditioners, furnaces, heat pumps and boilers.
  • The maximum lifetime deduction for the items is $1500. (For example if you install new windows in 2009 and take the full $1500, then you can’t take another $1500 for windows in 2010.)
  • You can include the cost of installation for allowed items in calculation the tax credit.
  • The tax credit only applies to your primary residence.
  • Unlike a lot of the other credits, the Home Improvement Credit doesn’t phase out for high income tax payers.
  • Additionally, the 2009 credit is expanded through 2016 for installing solar water heaters, geothermal heat pumps and wind energy systems. You receive a straight 30% credit (no $1500 cap for these items).

In order for the credit to apply, the doors, windows, insulation, air conditioners, furnaces, heat pumps and boilers installed must meet these energy efficient criteria:

  • Water Heaters: Must have an energy factor of at least 0.82 or a thermal efficiency of at least 90%.
  • Natural Gas & Propane Furnaces: Must have an annual fuel utilization efficiency rating of not less than 95.
  • Propane Hot Water Boilers, Oil Furnaces, Oil Hot Water Boilers: Must have an annual fuel utilization rate of not less than 90.
  • Exterior Windows & Doors – U Factor at or below 0.30 and a seasonal heat gain coefficient (SHGC) at or below 0.30.

For more information related to the credit directly from the IRS, visit: IRS Home Improvement Tax Credit Notice

We’d be happy to further discussing an energy efficient project on your home. Candy Bishop-Conlon, Accountant of Bishop & Associates in Marblehead (781-631-9000) is also happy to further discuss the tax credit in more detail with you.

 This blog is brought to you by James Gilroy House Wright Inc. We’re an exceptional builder, not your average general building contractor. We focus on serving clients in Marblehead, Salem, Swampscott, Lynn, Nahant, and Beverly, MA. We are happy to discuss your project with you. You can call us at 781-639-4868 or contact us from this website for a FREE estimate.

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