What's In It For You, You ask?

In addition to the First Time Home Buyers tax credit, The American Recovery and Reinvestment Act of 2009 has tax credits for home improvements! The purpose of this part of the act is to promote green jobs and energy independence. The home improvements are all related to improving the energy efficiency of a home. Below is a chart on which home improvement jobs are included and information on the tax credits:

• Windows and Doors 30% of cost up to $1500*
• Roofing 30% of cost up to $1500*
• Insulation 30% of cost up to $1500*
• HVAC 30% of cost up to $1500*
• Water Heaters 30% of cost up to $1500*

*subject to a maxi um of $1500 for all above improvements.

If you decide to use a geothermal heat pump or solar panels and water heaters, the tax credit is 30% of cost with no limit!

Tax credits reduce your total cost of the improvements. The credit is realized on your yearly tax return by reducing your total tax liability by the amount of the tax credit. For example, if you owe the Federal Government $4000 when you fill out your tax return and you have a $1500 tax credit due to qualifying home improvements, you will reduce what you owe the government by $1500 and only pay them $2500.

To qualify for the tax credit, the home improvement has to meet standards that will increase the home's energy efficiency. For more information, check out HGTV's website: http://www.hgtvpro.com/hpro/pac_ctnt/text/0,,HPRO_20196_87115,00.html
(the information is on the lower part of this website)

For more information on the tax credit, see: http://www.irs.gov/newsroom/article/0,,id=204335,00.html OR

www.recovery.gov