Home improvements can save you tax time

CHICOPEE, Mass. (WWLP) - Tax credits are available for certain energy efficient home improvements.

Homeowners can receive a tax credit for 30% of the cost of new windows, doors, insulation, and roofing. The items must be considered energy efficient and meet criteria set forth by the federal government.

Credits on these items cannot exceed $1,500. So, for a homeowner to receive the full credit, they must invest $5,000 in acceptable improvements.

Windows must have a U-Factor of 0.3 or lower to qualify for a tax credit. Windows that meet such criteria can be identified by their stickers. In fact, homeowners must retain stickers from each window. Although stickers do not need to be submitted with their 2009 taxes, they are necessary in the case of an audit.

Insulation must be energy star rated. Homeowners can receive a credit of 30% of the material’s cost, to $1,500 dollars. The cost of installation can not be claimed.

Typical roofing does not quality for a tax credit. One must select “cool roofing,” or reflective shingles. Certain energy star rated metal roofs are also acceptable.

The cost of installation can be included in the claim for the following items according to the Energy Star website: HVAC systems, biomass stoves, water heaters, solar panels, and geothermal heat pumps, wind energy stems, and fuel cells.

Thirty percent of the cost of these products, with the exception of the HVAC system and stove, can be claimed with no cap.

For more information about tax credits related to energy efficient upgrades, visit energystar.gov.