ESSEX COUNTY AREA - Go Green, Get Paid: Tax credit available for many energy efficient home improvements.

Go Green, Get Paid: Tax credit available for many energy efficient home improvements.

"Going green" is not only great for the environment, but it also may result in hundreds, or even thousands, of dollars in savings for taxpayers. H&R Block (NYSE: HRB) points out several energy-related tax credits available for 2008 and more that have been added for 2009.

Available for the 2008 tax year is a credit for residential energy efficient property (REEP) that was purchased and used to provide energy to the taxpayer's home in 2008. The REEP credit also includes the cost of installation. The following items are eligible:

* Solar panels - 30 percent of cost, up to $2,000

* Geothermal heat pumps and solar water heaters - 30 percent of cost, up to $2,000

* Small wind energy property - 30 percent of cost, up to $4,000

* Fuel cells - $500 for each half-kilowatt of capacity

"Home improvements are seen by many as an investment in the future value of the home," said Gil Charney, tax analyst with The Tax Institute at H&R Block. "However, by including these energy efficient changes, taxpayers can see their investment pay off much sooner."

For taxpayers considering home improvement projects now, know that recent legislative changes have extended, increased and expanded home energy credits for 2009 and beyond.

CONTACT AN H&R BLOCK YEAR ROUND OFFICES IN THE AREA:

Short Hills:
760 Morris Turnpike
Short Hills, NJ, 07078
973-376-4062

Irvington:
1094 Clinton Ave
Irvington, NJ 07111
973-371-0400

Maplewood:
1730 Springfield Ave
Maplewood, NJ
973-763-3883)

West Orange:
24428 Green Shopping Center
495 Prospect Ave, 401B,
West Orange, NJ, 07052
973-325-1880

East Orange:
(549 Main Street
East Orange, NJ, 07018
973-674-6089

Broad Street:
726 Broad Street
Newark, NJ, 07102
973-624-6712

Bloomfield Ave:
142 Bloomfield Ave
Newark, NJ, 07104,
973-484-2148

Ferry Street:
97A Ferry Street
Newark, NJ, 07105
973-522-0076


The REEP credit, listed above, has been extended through 2016 and, aside from fuel cell property, no longer has a maximum amount that may be claimed.

The nonbusiness energy property credit is available for 2009 and 2010. The credit is for 30 percent of the cost of external windows and doors, insulation, roofing, HVAC, non-solar water heaters and biomass stoves. The maximum lifetime credit is $1,500, and all products must meet specific energy guidelines to qualify.

All nonbusiness energy property credits must be used for a taxpayer's primary residence, and items must be in service between Jan. 1, 2009 and Dec. 31, 2010.

More information on energy efficient tax savings

In addition to home improvements, purchasing a new alternative fuel or plug-in electric car can also mean tax savings. The alternative fuel credit, which includes hybrid vehicles, is based on a formula determined by weight, fuel economy and technology. Taxpayers can claim up to $3,400 for the alternative fuel credit. The plug-in electric vehicle credit, determined by the capacity of the battery system, can be up to $7,500. Both credits are subject to a phase-out based on the amount of cars sold.

To see a complete listing of qualifying hybrid vehicles, visit www.digits.hrblock.com, and for more information on energy efficient tax savings, visit www.hrblock.com or call 1-800-HRBLOCK.

The Tax Institute, a division of H&R Block, is a national leader in providing unbiased research, analysis and interpretation of federal and state tax laws. Staffed by Enrolled Agents, CPAs, and Attorneys, The Tax Institute provides industry expertise for matters related to taxes and the professional tax preparation industry.

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About H&R Block
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