Economic stimulus offers home improvement tax credits

According to Energystar.gov, a tax deduction of up to $1.80 per square foot is available to owners or designers of new or existing commercial buildings that save at least 50 percent of the heating and cooling energy. The building must meet the American Society of Heating, Refrigerating and Air-conditioning Standard 90.1-2001.

Partial deductions of up to 60 cents per square foot can be taken for improvements affecting any one of three building systems: the building envelope, lighting or heating, and cooling systems.

The deductions are available for systems “placed in service” from Jan. 1, 2006 through Dec. 31, 2013.

People taking advantage of these tax credits must have a Manufacturer Certification Statement to qualify.

A Manufacturer’s Certification is a signed statement from the manufacturer certifying that the product or component qualifies for the tax credit. The IRS encourages manufacturers to provide these certifications on their website to facilitate identification of qualified products.

Taxpayers must keep a copy of the certification statement for their records, but do not have to submit a copy with their tax return.

Improvements made in 2009 will be claimed on 2009 taxes filed by April 15, 2010.

All Energy Star geothermal heat pumps qualify for the tax credit. The credit is not available for expenses for swimming pools or hot tubs.

Article Credit: The Frederick News-Post Online, Frederick County Maryland