Home Maintenance/Projects

2 types of energy tax credits to take by year end

In February, the federal tax credit was reinstated for energy efficient home improvements made in 2012 and 2013. A tax credit is a direct reduction of taxes due. It can be better than a tax deduction that only reduces taxable income.

The energy tax credit now has a $500 lifetime cap for qualified energy efficient upgrades to your existing principal residence, but the deadline is December 31. New homes and rentals do not qualify. You’ll find all the details on: http://www.energystar.gov/taxcredits. The highlights:

1. Tax credits for 10% of the cost. You may claim a tax credit of 10% of the cost of certain energy-saving upgrades. These include qualified insulation, windows, roofs, and doors, with a $200 limit for all doors.

2. Tax credits for the full cost. You can claim tax credits for the full cost of specified types of “qualified residential property,” but only up to certain caps. For example:

• advanced main air circulating fan – $50
• natural gas, propane, or oil furnace or hot water boiler with annual fuel utilization rate of 95 or greater – $150
• electric heat pump water heater with minimum 2.0 energy factor – $300
• electric heat pump or central air conditioner that achieves the highest efficiency tier of the Consortium for Energy Efficiency – $300 each
• natural gas, propane, or oil water heater that has either a minimum energy factor of 0.82 or a minimum thermal efficiency of 90% – $300
• biomass stove that uses “plant-derived fuel available on a renewable or recurring basis” (see site for details) – $300

You’ll need to file IRS Form 5695 with your tax return and have the Manufacturer’s Certification Statement that the item meets the efficiency requirements on theenergystar.gov website. That site also lists a few alternative energy items (such as solar panels) that qualify for tax credits after December 31.

Please consult a tax professional before making any purchases you think will qualify for a tax credit.

6 KEY FALL CLEANUP AREAS

1. Lawn. Mow until the first frost, keeping the length above 2.5″. Rake leaves that smother and kill grass. Rake up excess grass clippings using an iron rake or thatch rake. Check with a garden pro whether to aerate and fertilize.

2. Garden. Ask a local expert which plants to fertilize before the first frost. For example, you won’t want to fertilize roses because it discourages winter growth and makes them vulnerable to extreme weather.

3. New plantings. For a nice spring bloom, plant bulbs such as tulips, daffodils, and hyacinths. Day lilies and dahlias are also good for fall planting. To fill bare spots in your lawn, plant cool-season grasses such as perennial rye, bluegrass, and fescue.

4. Deck or patio. Sweep off leaves and debris. Cover patio furniture or remove and store if you have space. Wipe each piece with damp cloths and dry with towels. Remove or cover your grill and store it if possible. Remove mildew on decks with a solution of 3 quarts of water to 1 quart oxygen bleach and 1/4 cup of ammonia-free liquid dishwasher detergent. Put this in a garden sprayer and apply liberally. Let it set for 10 to 15 minutes.

5. Gutters. After most of the leaves have fallen, clean out and repair your gutters. Clogged and leaky gutters can flood the basement and cause other water damage to your home when snow melts.

6. Hoses and Mowers. Disconnect garden hoses and store inside. Turn off water supply at shutoff valve inside the house and open the outdoor spigot to drain it. Drain the gas from your lawn mower and sharpen or replace blades on garden tools.