Home Energy Tax Credits Pay Back 30% of Your Expense!
New higher Green Tax Credits apply to energy efficient improvements made to your home after February 17, 2009.
For example: If you invest $1,000 on better insulation or a high efficiency furnace for your home, this new law will return $300 in as a tax credit or 30% of what you spend. The total allowable is now $1,500, up from $500, under the old law. The products you install must be more energy efficient than what your are replacing or be certified. Check the product list at http://www.irs.gov . Look for the Energy Star label.
Alternative Energy Equipment Credit
For new alternative energy sources like geothermal heat pumps, solar energy generation or wind turbines, as long as these items are qualified as such and attached to you home, you can get the 30% tax credit with no dollar limit on these items.
Team up with an EEM = Energy Efficient Mortgage
EEM's have been around since the sixties. They let you borrow up to 5% (more than you would normally qualify for) to make energy efficient energy improvements to your new or existing home (county limits apply). By making these improvements before the end of 2010, you will also get the 30% tax Credit. Sweet!
How do you get an EEM?
A HUD certified FHA, VA, USDA or conventional lender can advise you on how to qualify and walk you through the steps to get your project approved and funded, whether a purchase or a refinance. Not all lenders offer EEM's. If you are buying a foreclosed or distressed property that needs some TLC (broken windows, missing furnace) this could be the ticket to getting your loan funded AND improving your home. I'd be happy to help!
Great Nesting Incentives!
With loan rates so low, and many builders low on work, now is the perfect time to go for a modest renovation or full scale addition and reap the benefit of tax credits. Energy improvments will also cut your energy bills by up to 50% while improving the comfort and health of your home for many years. Building materials and labor rates are very competitively priced and contractors are easier to schedule.
For many people who might want to 'move up' but can't sell their home in this market profitably, the addition of some great closet organizers, new flooring and better windows or kitchen appliances could make life a lot more comfortable while raising your home's value.
Think of it: you are improving your home value and employing local people which improves our tax base; while being credited back 30% of your energy improvements!
Plug and Drive Cars
If you purchase an Electric Vehicle during 2009-2011, and it has 4 wheels and weighs less than 14,000 pounds you could get a tax credit between $2,500 and $7,500, depending on the battery capacity/recharge factor. The new law applies to plug-in electric drive conversion kits. The credit is equal to 10 percent of the cost of converting your vehicle to a qualified electric plug in motor, up to $4,000.
Business Renewable Energy Grants
Business owners may apply for a grant or a renewable energy production tax credit for energy production facilties. If construction begins in 2009 or 2010, the grant can be claimed for energy investment credit property placed in service through 2016. You may be credited up to 30 % of your investment! The property must be placed in service before 2014 (2013 for wind facilities).
A rural homeowner with a year round stream, could, for example, build a micro hydro energy plant as a business and literally watch the money roll in by selling killowats back to your power company. How about a wind farm amongst your raspberries? Might scare off the crows!
For more on appliances, windows and lighting: EnergyStar Web Site
Happy Saving! loannetter
© copyright 2010 susan templeton loannetter
Existing Home Tax Credit: 30% of cost up to $1,500, Expires: December 31, 2010; Must be an existing home & your principal residence. New construction and rentals do not qualify.
Alternative Energy Tax Credit: 30% of cost with no upper limit, Expires: December 31, 2016; Existing homes & new construction qualify. Both principal residences and second homes qualify. Rentals do not qualify.
Source: IRS http://www.irs.gov/newsroom/article/0,,id=206875,00.html Source: http://www.hud.gov/offices/hsg/sfh/eem/energy-r.cfm
Do You Have Too Much Debt?
1 year ago