The economic rescue package that Congress passed in October includes significant tax credits for energy-efficient home improvements. It also extends tax credits for businesses and for the wind, solar and biodiesel industries in order to promote the development and use of environmentally sound technologies.
Texas Impact and our members lobbied hard all year for these tax credits, and we want to make sure Texans have all the information they need to take advantage of them. The clean energy tax credits give us even more financial incentives to make energy choices that are in line with our values—choices that will save energy, save money and help care for Creation!
Some of the products for which credits are available beginning in 2009 include: energy-efficient windows, doors, insulation, roofing, and central air conditioning systems; plug-in electric cars; small wind energy systems; and solar energy systems. In addition, businesses can receive credit for some of the energy-efficient products they produce and sell, and contractors can receive credit for building energy-efficient homes.
Tips for getting these great tax credits:
1. Check the fine print before you buy and install! Make sure the product is covered, and check to make sure you’re buying at the right time. (Some credits won’t apply for improvements made it 2008 but will in 2009, for example.) The U.S. government’s ENERGY STAR® site has great information about the specifics and we encourage you to visit and read up before you buy.
2. Keep all receipts!
3. If the product has an ENERGY STAR® label, keep the label! Or you can keep the manufacturer’s certification certificate. Better yet, keep both! Documentation matters.
4. Know your tax forms: for your home, use IRS form 5695. Homebuilders should use IRS Form 8908.