What is a federal consumer tax credit?
 |
Consumers claim the credit on their
federal income tax form at the end of
the year. This new credit reduces the
amount of tax you owe. The new credit
is a reduction of total income tax at
the bottom of your return, up to $1500.
This tax credit is a non-refundable tax
credit available for individuals who pay
taxes and who make energy-conscious
purchases to improve the energy
efficiency of their home.
|
Note: With regard to tax credits vs. tax deductions, in general, a tax credit is
more valuable than a similar tax deduction. A tax credit reduces the tax you
pay, dollar-for-dollar. Tax deductions - such as those for home mortgages and
charitable giving - lower your taxable income. |
|
When does this tax credit go into effect and how long will it last? |
The tax credit went into effect January 1, 2009 and is valid only for the
purchase of a qualifying biomass stove during 2009 and 2010. The maximum tax
credit for the two-year period is $1500. The sales receipt must indicate that
the purchase was made between January 1, 2009 and December 31, 2010. |
