We all know about the $8,000.00 max credit for new home buyers extended until April 30, 2010. But how many know about the additional $1,500.00 available on top of that? Here’s how to get it.
I challenge someone to show me the buyer who moves into a New Jersey home and doesn’t need something improved. That’s especially the case for energy improvements. Sometimes, such needed improvements might slow the sale of the home. But a little known extra goody in the Obama Stimulus Plan allows another $1500.00 max tax credit for qualifying energy improvements. Take a look at what’s available.
- A tax credit for 30% of the cost of energy-efficient doors and windows, insulation, air conditioners, furnaces, heat pumps and boilers – up to a lifetime cap of $1,500. This credit is available for 2009 and 2010. So, if you spend $5,000 on new windows in 2009 or 2010, you can claim a $1,500 tax credit on your 2009 or 2010 tax return. Nice. And imagine if you could get a $3500.00 seller credit at closing when you buy the home, then you get your windows for free. Even nicer.
- For doors, windows, insulation and other similar projects that tighten up the “shell” of your home, the credit is limited to the cost of materials.
- Items that meet energy-efficient criteria such as a new heat pump, boiler, furnace or air conditioner can include both materials and installation in determining the proper tax credit.
- The property improved must be your primary residence.
- Unlike the actual home buyer tax credit, the energy tax credit has no income caps.
- Expanded tax credits are available for large projects such as solar water heaters. Beginning in 2009, homeowners who install solar water heaters, geothermal heat pumps and wind energy systems are eligible for a tax credit of up to 30% of the cost, with no caps. These expanded tax credits are available through 2016. Both installation and materials qualify.
When buying your home, plan your purchase and all possible incentives so you get all the benefits you are entitled to.
Smart New Jersey home buyers are working with real estate and mortgage professionals to structure their home purchase to get maximum buyer advantage. Inquire for more information.
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