Planning some home improvement work this year?
Two new tax breaks can bring you savings of $1 in
tax for every qualifying $1 of expense. For
instance, when you insulate your principal
residence or add energy- efficient exterior doors
or windows, you may be eligible for a reduction in
your tax bill of up to $500 Installing solar hot
water heaters or electricity- generating solar or
fuel cell equipment can generate a credit of as
much as $2,000.
Two cautions: Some items, such as hot tub
heaters, are ineligible for these credits even
though they may be energy-efficient, and the
credits are not available for improvements you
make to vacation homes.
Your business might also benefit from
energy-saving improvements, thanks to a new
deduction for 2006. The cost of certain
energy-saving improvements made to commercial
buildings may qualify for an immediate deduction
of up to $1.80 per square foot instead of having
to be depreciated over many years.
So if you're thinking about home or business
building improvements, give us a call for details
about this potential tax saver for 2006.
