Tax Talk With Jim — The New Energy Tax Credit

By James A. Horchak, Esq., CPA

Homeowners may be able to take advantage of the new energy tax credit by purchasing an energy efficient product. The manufacturer of the product must provide a certification that it qualifies for the energy credit. The homeowner is eligible for the credit if the energy efficient product is installed on or before December 31st in the homeowner's principal residence. The only cost that qualifies for the credit is the actual cost of the product itself. Installation costs, including on-site preparation and assembly, do not qualify for the energy tax credit.

The energy credit is available only for the tax years 2006 and 2007, and the total credit for both years combined is $500.00.

Some energy efficient items that you might consider purchasing to take advantage of this credit include water heaters, heat pumps, central air conditioners and furnaces. In calculating the energy tax credit, taxpayers can also claim ten percent (10%) of the cost of any of the following qualified energy efficient improvements, such as insulation, exterior windows or doors.

Remember that unlike a tax deduction, the amount of a tax credit is subtracted directly from your tax bill and could result in substantial savings. For additional details, contact me at 888-534-6016.

Get In Touch Today

Get In Touch Today

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

map-img

Our Practice Range

Serving Southwestern Pennsylvania with offices in Westmoreland, Allegheny, and Blair Counties.

  • Super Lawyers
  • Best Lawyers
  • AV Preeminent
  • WILG
  • NOVA
  • NOSSCR
address-1

Greensburg Office:
550 East Pittsburgh Street
Greensburg, PA 15601

Toll Free: 888-534-6016
Phone: 724-221-3191
Fax: 724-837-1348
Greensburg Law Office Map

Pittsburgh Office:
941 Penn Avenue
Suite 101
Pittsburgh, PA 15222

Phone: 412-391-2800
Pittsburgh Law Office Map

Latrobe Office:
816 Ligonier Street
First Floor
Latrobe, PA 15650

Phone: 724-539-2841
Latrobe Law Office Map

Altoona Office:
615 Howard Avenue
Suite 210
Altoona, PA 16601

Phone: 814-656-0065
Fax: 814-656-0066
Altoona Law Office Map

address-2
address-3
address-4
  • Super Lawyers
  • Best Lawyers
  • AV Preeminent
  • WILG
  • NOVA
  • NOSSCR