The rules and tax incentives for going green in your home.Like what you hear? Help us out by writing a review at iTunes. Questions go to money@qdnow.com. Thank you!
Money Girl
153 MG Lower Your Taxes with Energy-Efficient Improvements
Building a portfolio with Fidelity Basket Profolios is kinda like making a sandwich. It's as simple as picking your stocks and ETFs, sort of like your meats and other topics. And managing it as one big, juicy investment. That's pretty good. Learn more at Fidelity.com/baskets. Investing involves risks including risk of loss. Fidelity Workers Services LLC, Member NYSC SIPC. My dad works in B2B marketing. He came by my school for career day and said he was a big row as man. Then he told everyone how much he loved calculating his return on ad spend. My friends still laughing at me to this day. Not everyone gets B2B. But with LinkedIn, you'll be able to reach people who do. Get $100 credit on your next ad campaign. Go to linkedin.com/results to claim your credit. That's linkedin.com/results. Terms and conditions apply. Linked in. The place to be. To be. Hi everyone, and welcome back to Money Girls' Quick and Dirty Tips for Richard Lyon. I'm Laura Adams. Considering going green in your home? There are new incentives for homeowners that can make your living space more energy efficient and lower your taxes. The reason tax breaks are offered as incentives for purchasing state-of-the-art energy efficient products, such as heating and air conditioning systems and exterior windows, is because those products are expensive. All that fancy technology comes at a price, and boy did I learn about it firsthand last week. The compressor for our downstairs air conditioner died, which is a real emergency when you live in Florida, even in December. The newest green tax incentives are part of the American Recovery and Reinvestment Act of 2009. That legislation expanded tax credits for expenses you incur to reduce the amount of energy you use, or to install alternative energy equipment. There are two tax credits that apply to homeowners who make energy efficient improvements to their primary residence located in the United States. They're called the non-business energy property credit and the residential energy efficient property credit. Even though they sound similar, they're completely different tax benefits. Let's cover the non-business energy property credit first. It applies to certain improvements that average consumers might make to their existing homes. Like energy saving roofs, air conditioners, heat pumps, water heaters, exterior windows, skylights, doors, and insulation. This credit existed previously, but it expired after 2007. Now it's been reinstated and expanded with higher efficiency standards. The credit was increased from 10% to 30% of the cost of qualifying improvements. The maximum credit limit was also increased from $500 to $1,500. That's the total amount you can claim for the combined 2009 and 2010 tax years. Qualifying improvements must be placed into service in either 2009 or 2010. By the way, labor is a qualified expense for some improvements, such as installing appliances, but not for others, such as adding insulation. Here's an example. If I spend $5,500 to have a qualifying high efficiency air conditioner installed in my home in 2009 or 2010, I'll receive a credit for 30% of the cost up to $1,500. 30% of $5,500 is $1,650, which exceeds the allowable credit, so my credit would only be $1,500. The credit reduces the amount of tax I owe by $1,500, and if I don't owe any tax, my refund would be increased by $1,500. Now the effective cost of my new AC system is reduced from $5,500 to $4,000. The second green incentive for homeowners is the Residential Energy Efficient Property Credit. This tax benefit is designed to encourage investment in more hardcore alternative energy equipment for existing homes and new construction. It includes items such as solar electric systems, solar water heaters, geothermal heat pumps, fuel cell property, and wind turbines. The credit amount is also 30% of the cost of the equipment and usually includes the labor to install it. Beginning in 2009, there's generally no cap on this credit and it's available for equipment placed into service through 2016. But it's a non-refundable credit, which is an important distinction because that means it can only reduce your tax liability to zero. Good taste is easy to spot, but hard to pin down. You know it when you see it, and in today's culture, there's no greater signifier of taste than the car you drive. You want something sophisticated, but not stodgy. Daring, yet classic, approachable, but with an air of opulence. It may sound like a rare find, because it is. And, it perfectly describes the Range Rover Evoke. Drive a statement piece with pure presence. The Evoke is charisma in motion. This luxury SUV is artfully crafted and designed to stand out, and the reductive exterior is an elegant expression of Range Rover DNA. With clean lines, the minimalist design speaks for itself. The chiseled taillights give it a sense of motion. Even at standstill, you'll find quality materials and solid craftsmanship at every turn. And you can curate your interior with a variety of distinct themes and trim finishes. It's an elevated drive for elevated lives. Explore the Range Rover Evoke at LandRoverUSA.com. September is a great month for planning. We start thinking about the rest of the year, whether it's back to school, big year-end work projects, holiday plans, or travel. Planning ahead is crucial in life, especially when it comes to what happens when you're gone. Getting life insurance may sound daunting, but Policy Genius makes the process a breeze. With Policy Genius, you can find insurance policies that start at just $292 a year for a million dollars of coverage. Some options offer same-day approval and avoid unnecessary medical exams. Policy Genius's technology lets you compare quotes from America's top insurers in just a few clicks to find your lowest price. It's the country's leading online insurance marketplace. And if you ever need help or guidance, they have an expert license support team to answer your questions, handle all the paperwork, and advocate for you throughout the process. It's never too late to plan ahead. Go to PolicyGenius.com or click the link in the description to get your free life insurance quotes and see how much you can save. That's PolicyGenius.com. My dad works in B2B marketing. He came by my school for career day and said he was a big row as man, then he told everyone how much he loved calculating his return on ad spend. My friend's still laughing me to this day. Not everyone gets B2B, but with LinkedIn, you'll be able to reach people who do. Get $100 credit on your next ad campaign. Go to LinkedIn.com/results to claim your credit. That's LinkedIn.com/results. Terms and conditions apply. LinkedIn, the place to be, to be. Here's an example. Let's say my electric water heater went kaput, and I decided to replace it with a solar water heater system. If it costs $6,000 to install, I would receive a tax credit for 30% or $1,800. That's wonderful if I owe $2,000 in taxes, for instance, because the $1,800 credit would reduce my tax liability to $200. But the credit doesn't help much if I owe little or no taxes because it won't come back to me as a tax refund since it's a non-refundable credit. If you're eligible, you can claim both credits on IRS Form 5695 and submit it along with your tax return. You must claim the credit on the return for the year that the improvement was made to your home. So, if I install a new AC system before the end of 2009, I have to claim the credit on my 2009 tax return. In addition to federal tax credits, you may also qualify for state incentives or rebates from your utility company. You'll find a comprehensive list of all energy incentives at the database of state incentives for renewables and efficiency at dsire.usa.org. Remember that not all energy-efficient products qualify for a tax credit. Be sure to see the manufacturer's tax credit certification statement in writing or on their website before buying anything. For a good overview on which products are eligible and the required specifications for each, go to energystar.gov. You'll find links to the sites I mentioned on the blog at moneygirl.quickandertietips.com. And speaking of quickandertietips.com, the QDT Network just launched a beautiful brand new website. It's much easier to search for show topics, subscribe to podcasts, and find products like books and audiobooks. Take a look and be sure to bookmark it today. I'm glad you're listening. Shaqing. That's all for now. Courtesy of Money Girl, your guide to our richer life. Introducing Wendy's new saucy nugs. The nugs you love covered in your favorite sauces. So no matter what flavor you're craving, Wendy's has you covered. Grab Wendy's new saucy nugs today. Open till midnight or later. At participating U.S. Wendy's, ours may vary by location. Earning your degree online doesn't mean you have to go about it alone. At Capelli University, we're here to support you when you're ready. From enrollment counselors who get to know you and your goals, to academic coaches who can help you form a plan to stay on track. We care about your success and are dedicated to helping you pursue your goals. Going back to school is a big step, but having support at every step of your academic journey can make a big difference. Imagine your future differently at Capella.edu. [BLANK_AUDIO]