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Time is running out on a US federal tax credit

Chances are you have given some thought to your home's cooling and heating systems this hot, steamy summer. It's very MoneySmart of you, especially considering time is running out on a federal tax credit scheduled to expire Dec. 31st.

If you buy certain qualifying energy-efficient heating and cooling products for your home, the government will credit you 30 percent of the cost, up to $1,500.

Here's what is covered: Biomass stoves, such as pellet and wood-burning stoves, used to heat the home or water. They must have a thermal efficiency rating of at least 75 percent.

Some important reminders: The products and systems purchased must be for your principal residence in order to qualify. New construction and rentals aren't eligible for the credit.

The tax credit is non-refundable, so you can't get more back in tax credits than you paid in federal income tax.

The $1,500 cap is per home, not per person. And even if you make multiple qualifying energy-efficient purchases, your total credits cannot exceed $1,500 for the years 2009 and 2010.

Aside from insulation, roofing, windows and doors, installation costs also count toward the tax credit.
To apply (US residents only), you'll need to save your receipts as well as the manufacturer's certification statement that came with your purchase (it's a signed statement that shows the product qualifies for the credit). When you file your taxes, you'll submit form 5695.

For more information about our qualified products and our certification statement, click here.

Not all Energy Star systems qualify ?each category has its own efficiency requirements in order to qualify for the credit. Go to EnergyStar.gov for more information. 

To get more details on the US government tax incentives, click here.

To read the complete article, click here.