Aug 30, 2009 (The Montana Standard - McClatchy-Tribune Information Services via COMTEX) -- Hidden deep inside the multi-billion dollar federal bailout and economic stimulus package are a few tax credits that can be useful for homeowners -- not just multi- million dollar business owners.
Many home energy investments, including insulation for your home, are eligible for a 30-percent federal tax credit.
But the window of opportunity closes quickly.
The upgrades must be completed within the 2009 or 2010 tax years to qualify for the credit.
Those who complete the work on time can qualify for federal credit up to $1,500 per taxpayer, which is subtracted from net taxes owed.
This has increased considerably from the 10 percent offered in previous years. Nationally, the tax credits are expected to be worth well over $500 million.
To further sweeten the deal, private energy suppliers such as NorthWestern Energy sometimes offer additional incentives and rebates on certain products.
Eligible expenses In some instances, old exterior siding can be stripped and an insulated sheathing put up and covered by new siding. It's a good approach and keeps most of the construction commotion outdoors. The cost of insulated sheathing is an eligible expense for the federal credit, as is the air barrier sheeting commonly called "home wrap." The replacement siding, however, is not.
Insulation can be blown into the exterior wall stud cavities of many older homes, even those with brick veneers.
Keep in mind that only the actual insulation product costs can be applied to the 30 percent federal tax credit, and not the installation costs. Comparatively low-cost insulation products such as cellulose, fiberglass and even open-cell foam can be expensive to install because of ancillary labor and installation costs. For example, the costs to strip and replace exterior siding or interior lath and plaster are not eligible.
Montana Tax Credit The 25 percent Montana tax credit for insulation of the building envelope is somewhat more forgiving. For example, the labor to install insulation may be included. The state encourages homeowners to insulate to the 2009 IECC standards, but the $500 Montana credit can be captured without regard to the amount of insulation installed.
Weatherstripping and sealing the building envelope against air infiltration are eligible costs for state but not federal credits.
Many home energy investments, including insulation for your home, are eligible for a 30-percent federal tax credit.
But the window of opportunity closes quickly.
The upgrades must be completed within the 2009 or 2010 tax years to qualify for the credit.
Those who complete the work on time can qualify for federal credit up to $1,500 per taxpayer, which is subtracted from net taxes owed.
This has increased considerably from the 10 percent offered in previous years. Nationally, the tax credits are expected to be worth well over $500 million.
To further sweeten the deal, private energy suppliers such as NorthWestern Energy sometimes offer additional incentives and rebates on certain products.
Eligible expenses In some instances, old exterior siding can be stripped and an insulated sheathing put up and covered by new siding. It's a good approach and keeps most of the construction commotion outdoors. The cost of insulated sheathing is an eligible expense for the federal credit, as is the air barrier sheeting commonly called "home wrap." The replacement siding, however, is not.
Insulation can be blown into the exterior wall stud cavities of many older homes, even those with brick veneers.
Keep in mind that only the actual insulation product costs can be applied to the 30 percent federal tax credit, and not the installation costs. Comparatively low-cost insulation products such as cellulose, fiberglass and even open-cell foam can be expensive to install because of ancillary labor and installation costs. For example, the costs to strip and replace exterior siding or interior lath and plaster are not eligible.
Montana Tax Credit The 25 percent Montana tax credit for insulation of the building envelope is somewhat more forgiving. For example, the labor to install insulation may be included. The state encourages homeowners to insulate to the 2009 IECC standards, but the $500 Montana credit can be captured without regard to the amount of insulation installed.
Weatherstripping and sealing the building envelope against air infiltration are eligible costs for state but not federal credits.
No comments:
Post a Comment