Save Energy this Season

Conserving energy this season will not only help reduce your carbon footprint but will save you money as well.  In today’s economy, many families are searching for ways to reduce monthly expenses and with winter heating costs increasing, now is the time to follow some simple tips to save energy.

Keep it clean. Clean air filters monthly.  Dirt and dust hinder air flow and will reduce efficiency.

Seal up the house. Cooled air can leak through cracks along window and door frames.  Weather-strip and caulk these cracks to avoid the drafts.  A properly-insulated home will improve energy efficiency.

Unplug. Gadgets around the house, like cellphone chargers and cable boxes, use energy and generate heat as long as they are attached to a power source.  That can add up to 10% or more of your electricity use each month.

Read more helpful tips to lower your electric bill at Smartmoney.com

Home Energy Tax Credits for 2010

With the tax deadline right around the corner, don’t forget to claim your home energy tax credits for 2010!

If you made energy efficient improvements to your home last year, you could end up with smaller utility bills and a smaller tax bill!

Credit Claim RequirementsFile Form 5695 with your Form 1040.
The improvements must be to your main home that you use as your principal residence, as well as to an existing home. If you had energy-efficient systems put in a home you built, you’ll save on energy costs, but you are not eligible for the tax credit.

Make sure you have a “Manufacturer Certification Statement” detailing the energy advantages of the improvement. You don’t need to send the document with your tax return, but hang onto it and your receipts just in case.

Installation costs of insulation, windows, doors or roofs do not count toward calculating the credit. Be sure to have an itemized bill that details the separate costs of the products and installation costs. But you can count installation charges for air conditioning and heating systems toward the credit.

The residential energy credit is nonrefundable, meaning that while this is a credit against any tax you owe, if your tax bill is small and your claim large, you might not get to use all of it.