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Getting Tax Breaks for Much Needed Repairs

Did you know that you can get tax breaks on your home or business just by making some repairs? This is a great incentive for business/home owners who need to make home improvements regardless. For everyone who makes energy-efficiency related improvements in the 2006/2007 tax years, the US government will give you money back. Tax Smart America? reported today that passage of the Energy Tax Incentives Act of 2005 provides for two groups of tax credits for home owners who make improvements related to energy-efficiency for tax years 2006 and 2007.

The Energy Tax Incentives Act of 2005 provides for two groups of tax credits for homeowners who make improvements related to energy-efficiency. First any energy-efficiency improvement to the building envelope (exterior of the home) such as doors, windows, or insulation for example and powering equipment. Second, solar panels and other such systems that power homes where the system improves the energy-efficiency may also qualify for tax credits. Tax credits are only available for homeowners under this bill and only apply to the primary residence of the taxpayer.

Some examples of insulation improvements include systems that reduce heat loss or heat gain, exterior windows including skylights and exterior energy-efficient doors. Another example is solar water heating systems whereby a homeowner can obtain a tax credit of up to 30% of expenditures with a maximum of a $2,000 tax credit for installation of these systems to the home. An exception to this credit is for systems added to the home to heat swimming pools and hot tubs. However these may still be claimed as ?medical? expenses if the taxpayer meets the test.