Saving the Environment and Saving Money Part II–The Residential Energy Efficient Property Tax Credit
Your Tax Savings = Unlimited $$ – 30% of what you spend!
Have you considered installing in your backyard one of those energy generating windmills that has been made famous by Cape Wind off the coast of Nantucket (it would be a smaller version)? Are you curious to see how the power of dirt and ground can heat your water and your house? Have you been hankering for some solar panels on your roof, but thought they were cost prohibitive? These energy efficient ways to power and heat our homes may still be more costly then conventional methods, but the government is willing to help you pay for them.
The residential energy efficient property credit (REEP) includes the purchase of solar, wind and geothermal equipment by the taxpayer for their principal US home. For example, if you install solar panels on the side of your house at a cost of $10,000, your real cost is $7,000 after the tax credit ($10,000 x 30=$3,000). Unlike the residential energy credit, there is no lifetime limit of $500; it is 30% of whatever you spend! A good tax savings for those inclined to make these kind of environmentally friendly improvements.
Stuart Steinberg, CPA, MBA has owned a strategic tax planning practice on the North Shore for 23 years. Please feel free to contact him anytime and let Erock Tax take care of you!