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Energy
Efficient Home Improvements
Home owners
looking to save money on heating and cooling costs with
energy-efficient improvements to their home can also benefit
from a newly expanded federal tax credit.
In
the recent stimulus legislation signed by President Obama,
previous energy-efficiency credits were not only renewed,
but were significantly improved. Before, home owners were
able to recoup
10 percent of the cost of each approved
energy upgrade with the lifetime cap of $500. The new
credit has tripled those amounts to 30 percent and $1,500,
respectively.
According to
Energy Star, a joint program of the U.S. Environmental
Protection Agency and the U.S. Department of Energy, a
typical household spends about $2,000 a year on energy
bills. By incorporating Energy Star appliances and other
energy-efficient components to your home, they estimate a
home owner can save about a third on his or her energy
bill. The expanded tax credit money available to home
owners on top of these savings is icing on the cake!
“This is an
excellent time for home owners to take advantage of these
tax benefits to make positive changes in their home that
will not only benefit them immediately, but over the long
term as well,” said Eric Borsting, a California home builder
and chair of the National Association of Home Builders (NAHB)
green building subcommittee.
What is
included?
Tax credits
are available at 30 percent of the cost, up to $1,500, in
2009 and 2010 (for existing homes only) for:
·
Windows and doors
·
Insulation
·
Roofs (metal and asphalt)
·
HVAC (heating, ventilating and
air-conditioning)
·
Water heaters (non-solar)
·
Biomass stoves
Tax credits
are available at 30 percent of the cost, with no upper limit
through 2016 (for existing homes & new construction) for:
·
Geothermal heat pumps
·
Solar panels
·
Solar water heaters
·
Small wind energy systems
·
Fuel cells
Details on
qualifying improvements are available on the
Energy Star
Web site at
www.energystar.gov/taxcredits.
How to
Claim the Credits
Home owners
can claim the 25C and 25D credits on IRS
Form 5695
when they prepare their income tax returns. Be sure to
retain records that include:
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Name and
address of the manufacturer
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Identification of the component
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Make,
model or other appropriate identifiers
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Statement that the component meets the 25C standards
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Climate
zones for which the criteria are satisfied
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Additional information for storm windows, if applicable
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Manufacturer’s certification — a signed statement from
the manufacturer certifying that the product or
component qualifies for the tax credit
To find a
builder or remodeler in your area to help make your home
more energy-efficient, contact us or visit the home owners
section of NAHB’s National Green Building Program Web site
at www.nahbgreen.org.
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