The energy-efficient home upgrades tax credit is scheduled to expire on December 31st this year. If you need to make improvements to your home, this could be an incentive to do it before the end of the year. If you have already made qualifying improvements without realizing the tax credit is available, it may seem like a holiday gift you weren't expecting.
The equipment must be installed to qualify for the credit which can put you under a time crunch. Heating and cooling systems, insulation, windows, doors, skylights, water heaters and home weatherization may qualify.
The Residential Energy Efficiency Tax Credit has been available for purchases since January 1, 2011. The tax credit is 10% of up to $5,000 of qualifying improvements which would make a maximum of $500 tax credit.
The cumulative maximum amount of tax credit that can be claimed by a taxpayer in the different years this law has been in effect is $500. If it has been claimed in previous years, the taxpayer is not eligible for this credit for additional new purchases.
You will also benefit when you sell your house. Home buyers are becoming more and more conscious about energy efficiency and the cost of home heating and cooling. Having HVAC systems, etc. updated before the home inspection will save you money and stress and make the selling process go a lot more smoothly. Why not do it now and get the maximum benefit? I updated my heat and a/c last year and in addition to the tax credit, my monthly gas and electric bill are substantially lower. And, it's toasty warm in the winter and cool and comfortable in the summer.
For more information, see energy.gov and always talk to your tax professional about your personal taxes before making any assumptions.
By the way, winter is the best time to move. Buyers and sellers both have less competition and you'll be way ahead of the game if interest rates go up (and sooner or later, they will!) Check out homes on the market or request a free home valuation report to find out what your house in Wayland, Sudbury, Maynard, Stow, Lincoln, Concord, or west of Boston may sell for this winter.