Thru 2010, the US Government is actually giving up to $1,500 in tax credits to homeowners who remodel their existing (principle) residence to reduce energy consumption. A lot of people think this tax credit only applies to replacement windows, but it is actually much more encompassing. The official name for the program is the Existing Home Retrofit (25C) tax credit and it extends to replacing insulation, doors, skylights, water heaters, heat pumps, central air conditioning, and metal or asphalt roofs.
You’ll want to have the energy efficient home products “placed into service” before December 31st, 2010. If you’ve already completed a project this year – don’t fret, this applies to you as well; as long as the product was “placed into service” after January 1st, 2009 (and you have saved your receipts!) you can apply for the credit.
There’s also a tax credit of 30% of cost, with no cap, for alternative energy sources such as geothermal heat pumps, solar panels and solar water heaters. This credit can be applied to any home that you use as a residence (not just your principle) and new construction as well.
Just be sure you check all the guidelines to make sure your project will fall within the required conditions to be eligible for the credit. The National Association of Home Builders is an excellent resource for information on the Existing Home Retrofit tax credit program. Their website is www.NAHB.org or you can always go to www.IRS.gov for all the guidelines regarding this particular tax credit.
Call or Email for more information on Green Remodeling:
717.371.5136
Mike@MBCRemodeling.com
