Creative Improvements Company

Save energy and money with green home improvements. As a home owner you can cut federal income taxes up to $1500 and reduce home energy bills with energy-efficient tax credits.

The federal income tax credits for specific home improvements are available now through 2010 thanks to the American Recovery and Reinvestment Act (ARRA). The goal of the ARRA tax credits is to both stimulate the economy by encouraging homeowners to complete energy-efficient upgrades and to save energy by requiring high-efficiency equipment and products. Access energystar.gov/taxcredits for more information on energy-efficiency tax credits for home owners.

ENERGY STAR qualified products use less energy, save money, and help protect the environment. ENERGY STAR is a joint program of the U.S. Environmental Protection Agency and the U.S. Department of Energy helping us all save money and protect the environment through energy efficient products and practices. 

Tax credits have been offered by the federal government in past years, but the new legislation provides for a higher credit amount and an expanded list of improvements.  Tax credits are available at 30% of the cost, up to a $1,500 limit, for installation in 2009 and 2010 for existing homes only.

What is the difference between a tax credit and a tax deduction?

A tax credit is generally much more valuable than a deduction. The tax credit reduces the actual amount of tax that must be paid dollar for dollar. A deduction, on the other hand, only reduces the taxable income. Therefore, the tax deduction is subject to the variation in the progressive tax rate. A tax credit does not depend on the tax rate and so it is of equal value to a taxpayer regardless of his income level.

How can you make your home more energy efficient?

Sealing and insulating the "envelope" or "shell" of your home — its outer walls, ceiling, windows, doors, and floors — is often the most cost effective way to improve energy efficiency and comfort. ENERGY STAR estimates that a knowledgeable homeowner or skilled contractor can save up to 20% on heating and cooling costs (or up to 10% on their total annual energy bill) by sealing and insulating.

ENERGY STAR-qualified windows, doors, and skylights save you energy and money, increase the comfort of your home, and protect your valuable possessions from sun damage. They are also better for the environment because lowering your energy use means less air pollution from power plants. Every ENERGY STAR-qualified window, door, and skylight is independently certified to perform at levels that meet or exceed strict energy efficiency guidelines set by the U.S. Department of Energy.

• Insulation material or system. (Materials Only)
• Exterior windows, skylights, doors. (Materials Only).

• must be "placed in service" from January 1, 2009 through December 31, 2010
• must be for taxpayer's principal residence.
• $1,500 is the maximum total amount that can be claimed for all products placed in service in 2009 and 2010.
• must have a Manufacturer Certification Statement to qualify
• for record keeping, save your receipts, warranty, and the Manufacturer Certification Statement (If requested to do the work, Creative Improvements Company will supply all documentation)
• improvements made in 2009 will be claimed on your 2009 taxes (filed by April 15, 2010) — use IRS Tax Form 5695 (2009 version) — it will be available late 2009 or early 2010. Check with your tax professional to ensure correct application of the energy-efficiency tax credit and to verify applicable credits from local government agencies and utilities.