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Summer heat prompts home energy improvements and some tax credit

August 17, 2011

We Texans like to lead in everything, so that's why we're all pulling for more days with 100-plus temperatures. We want to be first in the hottest, driest, most uncomfortable state in the nation.

Too hot for dining al fresco_afagen_Flickr CommonsIf weather forecasters are to be believed, we'll soon get there, at least here in the Lone Star State's capital city.

Austin is on pace to break the record set in 1925 of 69 days when thermometers went over the 100 degree mark. We tied it in 2009; we are taking the title this year!

It's not just crazy "we're number one" ranters who are pulling for the almost unbearable heat to continue.

Air conditioning repair companies also are welcoming if not the weather, at least the extra work they're getting because of it.

Some folks will simply opt for fixing the AC problem as best, and cheaply, as possible.

But others will decide it's time to get a whole new HVAC unit.

Good move. In addition to cooling off their homes, the replacement could let them chill out a little more at tax filing time next year.

As today's Weekly Tax Tip notes, some energy efficient improvements to your residence could qualify for a tax credit.

Lower 2011 tax credits: The good news is that the tax savings could be up to $500 on your 2011 tax bill. Since the tax benefit is a credit, that means it counts dollar-for-dollar against any tax you owe and could possibly wipe out your tax liability.

The bad news, though, is that the total 2011 home energy credit amount is just a third of what the tax break offered in prior years. Still, any tax credit is better than none.

And be sure to pay close attention to any changes you plan to make.

The tax breaks this year for energy upgrades to your home are once again parceled out depending on which products you use and what energy efficiency changes you make to your home.

But if you're really committed to saving energy, you could get a better tax credit for certain geothermal, wind, fuel cell and solar home improvements.

Energy Star breaks down the all the various home energy tax credits, for 2011 and beyond.

Here's hoping your AC holds out for a while longer. But just in case it doesn't, be sure to check into replacements that could give you some tax savings, too.

"No al fresco dining" photo courtesy afagen/Flickr

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The More Tax Posts tab at the top of this page will take you to, well, more tax posts. You also can search below for a tax topic. 

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TAX-SAVVY WAYS 
TO WRAP UP 2026

It’s over! With October’s extended filing deadline behind us, it is now time to focus on year-end moves to reduce your 2026 tax bill. 

You’ll find ways to do just that on the Tax Tips page (see the More Tax Posts drop-down menu at the top of the blog), as well as the separate tax tip pages for each month, notably October through December. If you’re on the Tax Tips page, you’ll find a monthly list at the end of this column. If you’re on another blog page, you can head straight to the October tips; at the bottom of that tips page you’ll find links to all the other 11 months’ collections of tax advice.

Not to spoil what you’ll find in that tax advice, but it does cover such things as tax deductions for charitable donations, investment moves that could reduce tax due, and ways to max out your tax-favored retirement savings. 

Finally, as the year winds down, things get hectic. There are lots of other things to occupy our time, like the much more fun upcoming holidays. But don’t lose sight of taxes, since timing is key. To be of use, most tax moves must be made by the end of the tax year. That’s Thursday, Dec. 31, which also is the last business day of the year. 

So that you don’t miss that final tax year deadline, also keep an eye on the countdown clock below. It will keep you on top of just how much time is left to make important, tax-saving moves. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

Comments
  • home energy

    Awesome post, the content of this one are really admiring! The note of Weekly Tax Tip was right, some energy efficient improvements to your residence could qualify for a tax credit.

  • Care For The Environment, Use The HVAC System For Your Home Air Conditioner

    AC is needed in hot regions where the heat can damage the children or the elderly, sometimes causing heat stroke or possibly death. HVAC has some positive qualities, but the results may be dangerous in the world. In hot areas, individuals or families u…

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