6 midyear tax moves to make
Make home energy improvements
Does your home need a little bit of improvement? Uncle Sam wants to help if your upgrades are energy-efficient.
As part of the American Recovery and Reinvestment Act of 2009, otherwise known as the stimulus package, common energy upgrades such as installing storm windows and doors, adding insulation, and buying a new energy-efficient air conditioner or heat pump, could get you a $1,500 credit when you file your tax return.
This tax break is good for improvements made through the end of the year. Be careful, however, if you claimed the maximum credit on last year's return; this tax break is limited to a total $1,500 claim, not that amount every year.
However, if you make more ambitious energy improvements, such as installing solar energy, wind power or geothermal systems, the tax break is even better. These home energy upgrades could qualify for a tax credit equal to 30 percent of the cost, including installation, without any cap on the credit amount.