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Tax questions. Can we claim 3,000 for home improvements for Energy Efficiencies or are we limited to 1,500. We file Married for Federal, and Married but separate for State. Also if we install new windows in 2009 are we still eligible in 2010 if we install more windows?

Submitted: 20 days and 3 hours ago.
Category: Tax
Value: $9
Status: CLOSED
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State/Country relating to question: Montana

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Hello XXXXXXXX,

Even if you purchase multiple products you can only get a maximum of $1,500 over the 2-year period (2009 & 2010). Basically you can spend up to $5,000 during this 2 year period on a single or multiple products, and get 30% or $1,500 (30% of $5,000 = $1,500) back as a tax credit. If you get the entire $1,500 credit in 2009, then you can't get anything additional in 2010.

The $1,500 maximum does not apply to geothermal heat pumps, solar water heaters, solar panels, fuel cells, and wind generators. These are all eligible for a 30% tax credit with no upper limit. However, the tax credit for fuel cells is limited to $500 per .5 kW of power capacity. The tax credit with no upper limit is completely separate from the one limited to $1,500 - so you can get both. For example, you can get $1,500 back for new windows, and $3,000 back for a new geothermal heat pump - for a total tax credit of $4,500.

If this was helpful please press the Accept button. Positive feedback is also appreciated.

Thank you XXXXXXXX

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Expert: Merlo
Pos. Feedback: 99.8 %
Accepts: 
Answered: 11/2/2009

Accountant

25+ years tax consulting. Specializing in returns for US citizens living abroad

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