How much will the government pay me to replace this window?
Where does the time go? Seems like summer was just here, and yet there’s already a radio station here playing 24-7 Christmas tunes.
With just 7 weeks left until the end of 2007, it’s a good time to wrap up tax tasks. One credit worth considering is the home energy efficiency improvements credit. According to the EnergyStar.gov website, the credit for improvements to the “envelope” of your home expires Dec. 31, 2007.
There are rules and limits for each category of improvement. Too many to get into here. But I thought it was worth considering a specific example, doable before Dec. 31, to show one tax saving scenario.
The ballpark quote Home Depot gave me on replacing these was $1,900. Window tax credits are up to 10% of a maximum of $2,000 spent. The easiest way to figure out what your credit would be is by filling out the Form 5695.
Given all the rules, this project, if completed before Dec. 31, would make me eligible for $190 credit that would appear on Line 50 of my 2007 1040. I suppose it’s not huge, but it’s not tiny either, and I am somewhat more likely to take this on.
- IRS form 5695
- Wall St. Journal story on the credits
- Energy Star info on the credits for windows and doors