Energy Efficient Tax Credit - KTEN.com - No One Gets You Closer

Energy Efficient Tax Credit

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We're talking your money and how to keep it in your billfold.  Now that winter is heading our way, you can winterize your home and get rewarded for it by updating your home appliances to get a tax credit.  

This year the 2009-2010 government tax credit is even bigger than last.  The catch, your new appliances must be energy efficient.  Items topping the list blinds, windows, doors insulation, light bulbs, washer and dryers, etc.  To many, this year's increased pay back is worth the trip to the store.  

"The tax credit is 30% of the cost of the product up to $1,500 so it's a tax credit that will reduce the amounts one owes or increase their refund.  There are certain products that don't have a cap, solar powered hot water heaters, electric geothermal heat pumps and wind turbines.  For those, there is no cap.  You get 30% of your cost back, " says Matthew Henley, CPA and professor at Austin College.

But not every energy efficient appliance will put money back in your pocket, this credit is product specific.  Here's some tips to get that credit, you'll need to look for more than just the star make sure the label has a tax credit certification located on the packing or you can look on the manufacturers website.  And always remember when making a purchase like this to keep your receipt.

If you use energy efficient items, you can expect a 30 to 40% decrease on your monthly electric bill. Henley says, "This is absolutely worth it.  This is one of the best credits going right now because not only are you getting a reduction on your tax bill, but you get the benefits of lowering your month utility bills."

The tax credit is for 2009 and 2010 so if you spend enough to receive a 1-thousand dollar credit in 2009, you still have the option to spend more and receive the other $500 in 2010. \

Christina Lusby, Reports.