North Charleston, S.C. (PRWEB) October 13, 2007
What could be better than making your home more energy efficient?
Well, making your home more energy efficient and getting a tax credit from the IRS for doing so.
"Adding ceiling fans, window treatments such as storm windows and shutters, insulation, exterior doors, metal roofs, and gas powered dryers, water heaters and stoves can all qualify for the residential energy credit," said JK Harris and Company's Bill Wandel, an Enrolled Agent of 17 years and CPA of eight years. "The credit is 10 percent of the cumulative purchase price, but no more than $500 in total."
This credit is one of the highlights of the Energy Policy Act of 2005. In order to receive the credit for making your home more energy efficient, you must purchase the products between Dec. 31, 2005 and Jan. 1, 2008.
Tax credits are also available for certain vehicles. The qualified Alternative Fuel Motor Vehicle Credit was enacted by the Energy Policy Act of 2005 and includes four categories: fuel cell vehicles, advanced lean burn technology vehicles, hybrid vehicles, and alternative fuel vehicles.
Fuel cell vehicles are propelled by power derived from one or more cells, which convert chemical energy directly into electricity by combining oxygen with hydrogen fuel.
Advanced lean burn technology vehicles are passenger vehicles or light trucks with an internal combustion engine that is designed to operate primarily using more air than is necessary for complete combustion of the fuel; incorporates direct injection; and achieves at least 125 percent of the 2002 model year city fuel economy.
Hybrid vehicles have drive trains powered by both an internal combustion engine and a rechargeable battery. And alternative fuel vehicles are fueled by compressed natural gas, liquefied natural gas, liquefied petroleum gas, hydrogen, and any liquid that is at least 85 percent methanol.
"Currently, to qualify for the credit, the criteria used is based on the existing fuel efficiency of vehicles (or miles per gallon) produced in the 2002 model year," Wandel said. "So far the only vehicle to qualify under the alternative fuel vehicle category is the 2007 Honda Civic GX, which operates solely on compressed gas."
Wandel also said legislation is being considered for tax incentives on future purchases of Flex Fuel vehicles that run on both gasoline and ethanol.
"Until the legislation is modified, the only way a Flex Fuel vehicle will qualify is when it can demonstrate a significantly greater fuel efficiency than the 2002 benchmarks," Wandel said.
For more detailed information on the energy credits available, visit http://www.irs.gov.
About JK Harris:
JK Harris & Company, LLC, (http://www.jkharris.com) based in North Charleston, S.C., is the nation's largest tax resolution firm and has served over 200,000 customers since its founding in 1997 by John K. Harris. JK Harris consultants are available to meet with consumers in over 425 locations nationwide by appointment only. The company also provides services for student loan debt, investment fraud, fee-based financial planning, tax return preparation, and audit representation.