- 4 reads
As the eligibility for home efficiency upgrades under the American Recovery and Reinvestment Act (ARRA) funds draw to a close, now is the time to make your home more energy efficient. To help you get ready we will be doing weekly segments on various qualifying home improvements as we count down to the last day of eligibility for the ARRA tax credit which will be Friday, December 31st.
Qualifying home improvements include updates to the exterior envelope (windows, skylights, insulation, etc.), HVAC system (central air, heat pumps, furnaces, boilers, etc.), water heating (tankless, electric, biomass or solar), and power generation (photovoltaics, small wind, or fuel cells). The majority of these retrofits will earn a federal tax credit of 30% of the cost of the total renovation with a total cap set at $1,500.00 for the 2009 and 2010 tax years. So if you spent $5,000 on qualifying windows in 2009 and $5,000 on a new qualifying furnace in 2010 you will not receive more than the cap of $1,500. (It should be noted, however, that the cap is extended for more expensive elements such as geothermal heat pumps and solar water heaters through 2016).
In order to qualify, the renovation work must be done by the owner of an existing residential property – which unfortunately means renters are not eligible for the tax credit. Additionally, new homes are not eligible for the tax credit unless the home owners are pursuing solar hot water heating, geothermal heat pumps, solar photovoltaic panels, or small wind energy system. Although the tax credit does not extend to labor and installation costs on windows, doors, insulation, or roofs it is included in other qualifying improvements. Since air leakage can account for 5%-40% of the cost to heat and cool your home, making energy efficient updates now will enable you to both lower the cost of your energy bills and get a tax credit for doing so.
As you're planning your retrofit be sure to use resources such as GREENandSAVE's Residential GREEN De-Coder to ensure that the appliances you're considering are eligible for the tax credit. Other resources for additional state rebates and qualifying products can be found on both ENERGY STAR's and the Air-Condition, Heating, and Refrigeration Institute websites.
Want to make energy efficient upgrades to your home but are not sure where to begin? Then contact your local Home Efficiency Checkup Professional to see what opportunities would best benefit your home.
