Take Advantage of Energy-Saving Tax Credits for Your Home
Home improvement season is here and Better Business Bureau is offering advice on how to take advantage of tax credits being offered by the Federal government while increasing home energy efficiency and helping the environment at the same time.
The American Recovery and Reinvestment Act of 2009 included several new tax and expanded credits that homeowners can take advantage of while increasing the energy efficiency of their home, and according to Remodeling Magazine's 2008-2009 Cost vs. Value report, energy efficient replacement projects are some of the best bets for recouping money at resale. Some qualifying improvements include routine work that every homeowner must undertake now and then, such as installing a new roof. However, other qualifying improvements are more involved including installing a wind or solar energy system.
“Increasing the energy efficiency of your home is one way to cut down on monthly bills, and now is a great time to make some modest home improvements to take advantage of federal tax credits and boost resale value,” said Joan Coughlin, BBB spokesperson. “Before making any energy saving purchases, do your homework because not all products qualify for a tax credit and not every product with an ENERGY STAR seal will apply.”
To qualify for tax credits, improvements must typically be made on the owner’s primary residence. Homeowners should keep in mind that just because a product has an ENERGY STAR seal—the Environmental Protection Agency’s standard for energy efficient consumer products—it doesn’t mean the purchase qualifies for the tax credit. For the following home improvements, a household can take a tax credit for 30 percent of the improvement cost up to $1,500 total for all improvements made.
A full list of qualifying home improvements is available online at: www.energystar.gov/taxcredits.
BBB offers the following advice for homeowners on finding a company or contractor they can trust to help make their house greener:
For more information on making home improvements visit www.bbb.org.