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RESIDENTIAL ENERGY & EFFICIENCY CREDIT gives
homeowner's tax breaks for the following:
ELECTRICITY: Generating solar (photovoltaic)
equipment, solar heating property and fuel cell power
plant.
- For those of you wondering what a fuel cell
power plant is, it's a new technology that
convents fuel into electricity by using electro
chemical methods.
- Those credits that equal 30% of the cost, with a
maximum of $2,000. per year for solar water
heating, and $500. for the balance.
- A 10% credit for insulation materials or systems
that reduce hear loss, exterior energy efficient
windows and doors, and certain roofing materials.
- Credit for up to $300. for the cost of electric or
geothermal heat pumps, energy efficient central
air conditioners, and up to $150. for natural gas,
propane oil or hot water heaters.
- A credit of up to $50. for an advanced main
circulating air fan, and a natural gas propane or
oil furnace.
- Your overall lifetime credit for all these small
improvements is $500., $200. of which go
towards energy saving windows.
Beginning this month purchases for certain fuel efficient
vehicles will be eligible for new credits. Generally, the
heavier your car the bigger the tax credit, but it's also
based on the fuel efficiency. The maximum savings for
cars weighing up to 8,500 lbs. is $3,400. You may have
to buy early because the credit is only available for the
first 50,000 vehicles per manufacturer, then it's phased
out.
OTHER TAX SAVINGS IDEAS:
This is the best time of year to start a pension plan to
begin saving for your retirement. Please contact our
office to discuss this in further detail.
- The official IRS Mileage rate is 48.5 cents per
mile.
- This year credit reports became free to anyone.
You are now entitled to get a free credit report
once every 12 months from the three nationwide
credit bureaus. To order your free credit report
call: 877-322-8228, or go online to
www.annualcreditreport.com
Santos Associates, FEDERALLY AUTHORIZED TAX
PRACTITIONERS, can help you with your accounting,
tax and financial planning needs. Call today for an
appointment & consultation. We are not attorneys, we
can refer competent council upon request.
