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There is a difference between tax credits and tax deduction. A credit is a reduction of the actual taxes paid. A tax deduction is a reduction of taxable income. Fortunately, homeowners have an opportunity to avail themselves of both tax breaks.
A homeowner can take a tax credit for rehabilitation of an historic property (including a home in a historic district) of 25% of the cost of rehabilitation. Another example of tax credits available for homeowners is that available for energy conservation expenses. A homeowner can take a maximum credit of 15% of the first $2,000 for in
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