As the year 2011 draws to a close, it’s time to think about any last-minute things you could do to reduce your tax bill. One thing you might be able to use to qualify for a tax credit is improving your home’s energy efficiency. As long as your project increases the energy efficiency of your home and you buy the supplies before the end of the year, you’ll probably qualify (but certainly check with a tax professional to be sure).

How Much Can You Get?

If you’re familiar with the tax code from prior years that included the new American Recovery and Reinvestment Tax Act of 2009, there really aren’t a whole lot of changes for the year 2011. For most upgrades that affect the energy efficiency of your home, you can gain a tax credit of 30% of the cost – even up to $1,500 in some cases. You could possibly spend $5,000 on a project such as window or roof replacement and get back the full $1,500 (30 percent) on your federal income tax.

You can only get the credit on the cost of the materials, not the installation labor, so that’s why it’s important to buy your supplies now.

In some instances, you may also be able to get a state or utility rebate, depending on the extent of your energy efficiency project. So you might be eligible to earn a credit of even more than $1,500, which really makes paying for that major project now, rather than waiting, worthwhile.

What Types of Projects Are Eligible?

While we can’t tell you exactly what projects you should consider in order to be eligible for the federal tax energy efficiency rebate (check this site Federal Government Energy Star Tax Credit program to be sure), we can tell you that the following are examples of approved additions to your home:

*Insulation – Includes caulk, weather stripping and foam sealants

*Exterior Windows – Includes skylights and storm windows

*Doors – Includes storm doors

*Metal or Asphalt Roof

*Air Conditioning/Heating Systems

*Water Heater (new and efficient or solar)

*Biomass (Corn) Stove

*Geothermal Heat Pumps

*Solar Panels

*Alternative Energy Systems

The products you install must meet certain criteria in regards to their energy efficiency; come in and talk to us at Kay Supply and we can confirm whether or not the building supplies you purchase meet those criteria. As a general rule, the products should be expected to last five years minimum (a two year warranty) and be installed on a primary residence by the homeowner.

Don’t miss out on a tax credit to lower your tax liability next year! Come in and talk to us today so we can order the energy efficiency products you need for your qualifying home remodeling projects.