The “fiscal cliff”This was avoided, but what does it mean for homeowners? There are many. The Jan. 2 bill, which was signed into effect, restricts the tax rate from rising and reinstates or extends tax credits for qualified energy-efficient home improvements between Jan. 1st 2012 and Dec 31st 2013. With the purchase or installation of qualified products, homeowners can receive tax credits up to $500
“Now is an ideal time to check off some of those home improvement ‘to do’ items,”Trey Hoffman is the global product manager at Rinnai. “In addition to the tax break, homeowners reap the benefits of these energy-efficient upgrades for years, as these products can help reduce monthly utility bills.”
What is an energy-efficient upgrade? To qualify, products must meet certain efficiency requirements. The following are eligible products that homeowners can choose from:
* Insulation materials, which help keep a house warm in the winter and cool in the summer, qualify if they meet 2009 International Energy Conservation Code requirements. The credit value equals 10 percent of the insulation material’s cost.
* Exterior windows and skylights, if Energy Star-rated, can reduce homeowner energy bills seven to 15 percent. Homeowners can get a 10% credit if they choose Energy Star-qualified windows.
* A Tankless Water Heater can save homeowners up to 40 percent on their monthly energy bills. Rinnai’s tankless water heaters are eligible for qualification. They have an Energy Factor (EF), of at least.82. Homeowners who choose to heat their water more efficiently can receive a $300 credit.
“Homeowners don’t always have to sacrifice luxury, aesthetics and comfort when upgrading to energy-efficient products. This is especially the case with tankless water heaters,”Hoffman was also mentioned. “Tankless technology affords homeowners the ability to enjoy endless hot water, while saving energy. The product’s long lifespan — nearly two decades — gives homeowners peace of mind knowing they’ve selected an energy-efficient product that will pay them back month after month for years to come.”
What documentation is required to receive the tax credit? The IRS Form 5695 must be filed by homeowners with their taxes. They must also keep receipts showing when the equipment was purchased as well as a copy manufacturer’s certification. Further guidance may be available from tax advisors or accountants. You can find more information about receiving the tax credit on a tankless water heating system at www.taxcredit.gov. www.rinnai.us/tankless-tax-credit.
