Remodelers: Tax Credits Can Spur Sales
Remodelers may find that the tax credit for energy-efficient home improvements signed by President Bush in September can be a financial incentive to encourage more customers to go green on their renovation projects in 2009.
The IRS Section 25C tax credit for existing homes, which expired at the end of 2007, has been reinstated as part of the economic rescue package passed on Oct. 3.
The tax credits have been extended through the end of 2009, although they were not made retroactive for projects that were completed before the package was signed by President Bush.
With the newly enacted legislation, home owners can receive tax credits for installing energy-efficient windows, doors, roofing and insulation as well as furnaces, air conditioners and heat pumps. Details on qualifying improvements are available at the IRS Web site.
Remodelers can encourage their customers by becoming familiar with the model types and products that qualify for the tax credit - but home owners must submit the appropriate forms with their tax return.
Home owners should retain records that include product information and a certification statement from the manufacturer indicating how the product qualifies for the tax credit. They do not need to submit the paperwork to the IRS, nor do they need the manufacturer's sales receipt.
The record for each product should include:
- Name and address of the manufacturer
- Identification of the component
- Make, model or other appropriate identifiers
- Statement that the component meets the 25C standards
- Climate zones for which the criteria are satisfied
- Additional information for storm windows, if applicable
- A declaration that the certification statement is true
Alternatively, the home owner can use the Energy Star certification of the product, if available.