Purchase $2,000 of insulation products, such as cellulose for your attic (installation costs for insulation are NOT deductible.)
Deduct 30%, or $600, next April from your 2010 taxes.
Identify other improvements to be installed by the end of 2010 to use the remaining $900 credit.
Enjoy ongoing comfort in your home and significant satisfaction every month you tear open your energy bills.
Renewable Energy Example
Purchase and install a solar hot water heater .
Install system for around $8,000, which will provide approximately 60% to 70% of your hot water needs.
Deduct 30%, or $2,400 from your federal tax bill. (Installation costs ARE deductible for Energy Star solar installations, and your system is exempt from State sales and property taxes.)
Check with the Mn Office of Energy Security for current grant programs for further savings.
