With so much grumbling going on about politics and the government (none of which we’re going to touch here with a ten-foot pole!), we figure we’d chat about some tax-related news that nearly everyone – regardless of political stripe or what you do with your tea bags – would be happy to hear.
In case you didn’t already know, if you’re making home improvements that are energy efficient, you may be eligible for a tax credit from Uncle Sam. If you made these environmentally-savvy improvements to the home you own, you can receive 30% of the purchase price of qualified energy-efficient products, up to a maximum tax credit of $1,500. We know that if you’re doing major renos, there’s a good chance you spent a lot more than that, but, hey, $1500 is $1500, right?
According to the tax professionals at About.com, home improvements that could qualify as tax credits include:
- select energy-efficient appliances that have an Energy Star
- exterior doors and windows
- storm windows
- skylights
- metal roofs
- insulation
- central air conditioning and heating
- geothermal heat pumps
- hot water boilers
- advanced main air circulating fans
- biomass fuel stoves with a thermal efficiency rating of 75% or more
- asphalt roofs with cooling granules
This means that if you have to replace your windows anyway, for example, you might want to look into energy efficient versions. Not only would you likely save money on your monthly heating bill, but you can get a bit of coin back come tax time as well.
The news gets even better if you’re a super hippie extra keen on making your home energy efficient. The following upgrades are eligible for a 30% tax credit with no maximum tax credit:
- Solar panels
- Solar-powered water heaters
- Geothermal heat pumps
- Photovoltaic systems
- Small wind energy systems
- Fuel cells
Now, that’s quite the deal! If you’re not sure where to start, consider getting an energy audit to see where improvements can be made in your home.
As we’re not tax experts, we strongly suggest that you find out the details of the Energy Tax Credit plan yourself before making a purchase or starting on plans. Many home improvement stores carry brochures on the subject, or you can look online at the IRS’s website.
The EPA Energy STAR program is great. It’s become a little too easy and many builders are using it simply as marketing, not because it’s the right thing to do. The new Version 3 Program will separate the men from the boys (or the women from the girls) and will put the teeth back in the program. We are on board and very much looking forward to it. The new EPA WaterSense program is a no-brainer for quality minded builders and buyers as well.