Rudolph bathroom staring Emily & Chloe!
Sunday, February 19, 2006
Ohio Tax Credits for Sustainable Homes
To keep you all current on sustainable design for residences in Ohio, please know that Ohio is providing tax benefits for certain remodeling projects due to Bush signing the Energy Tax Incentives Act of 2005. You may be able to use some of these benefits if you are considering doing ANY remodeling this year. A business contact that is a local accountant, Marie Cutlip, provided the following information. If you have any questions regarding how this can help you with your taxes, I would be happy to pass your name along to Marie. Please read on:
What the New Energy Bill Means for You
PRESIDENT BUSH signed the Energy Tax Incentives Act of 2005. While the law was described by some in the media as a giveaway to huge energy companies, it also contains some generous new tax incentives for consumers.
The best part: They all come in the form of tax credits, the very best kind of tax break. A credit lowers your federal income tax bill dollar for dollar. In contrast, a deduction lowers only the amount on which you're taxed, so your bill is reduced only by a percentage of the write-off.
Here's what the 2005 Energy Act has in store for you.
New Tax Credit for Residential Energy ImprovementsThis personal tax credit has a $500 lifetime limit, but it's broad enough that many folks will benefit even though the numbers won't be very big. The credit applies only to energy-saving items you put to use in your main residence after 2005 and before 2008 (vacation homes don't count). The credit amount equals the sum of 10% of your expenditures for a qualified energy efficiency improvements to an existing home plus 100% of your expenditures for qualified residential energy property.
The 10% part of the credit for qualified energy efficiency improvements covers outlays for the following items:
Metal roofs coated with heat-reduction pigments.
Exterior doors.
Exterior windows including skylights (the lifetime credit for windows is limited to $200).
Insulation materials designed to reduce heat loss or gain.
The 100% part of the credit for qualified residential energy property covers money spent on these things:
Qualified electric heat pumps, electric heat pump water heaters, geothermal heat pumps,andcentral air conditioners. The credit for these can't exceed $300.
Qualified natural gas, propane and oil furnaces, and qualified hot-water boilers. The credit for these can't exceed $150.
Advanced main air circulating fans. The credit for these can't exceed $50.
Please use this information wisely!
What the New Energy Bill Means for You
PRESIDENT BUSH signed the Energy Tax Incentives Act of 2005. While the law was described by some in the media as a giveaway to huge energy companies, it also contains some generous new tax incentives for consumers.
The best part: They all come in the form of tax credits, the very best kind of tax break. A credit lowers your federal income tax bill dollar for dollar. In contrast, a deduction lowers only the amount on which you're taxed, so your bill is reduced only by a percentage of the write-off.
Here's what the 2005 Energy Act has in store for you.
New Tax Credit for Residential Energy ImprovementsThis personal tax credit has a $500 lifetime limit, but it's broad enough that many folks will benefit even though the numbers won't be very big. The credit applies only to energy-saving items you put to use in your main residence after 2005 and before 2008 (vacation homes don't count). The credit amount equals the sum of 10% of your expenditures for a qualified energy efficiency improvements to an existing home plus 100% of your expenditures for qualified residential energy property.
The 10% part of the credit for qualified energy efficiency improvements covers outlays for the following items:
Metal roofs coated with heat-reduction pigments.
Exterior doors.
Exterior windows including skylights (the lifetime credit for windows is limited to $200).
Insulation materials designed to reduce heat loss or gain.
The 100% part of the credit for qualified residential energy property covers money spent on these things:
Qualified electric heat pumps, electric heat pump water heaters, geothermal heat pumps,andcentral air conditioners. The credit for these can't exceed $300.
Qualified natural gas, propane and oil furnaces, and qualified hot-water boilers. The credit for these can't exceed $150.
Advanced main air circulating fans. The credit for these can't exceed $50.
Please use this information wisely!
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