Clean up with green tax credits
Filed under: Home, Green, Taxes-tax credits
While the $8,000 first-time homebuyer tax credit is scheduled to expire next month, there are ways that everyone - not just first-time buyers -- can collect thousands of dollars in tax credits by installing or upgrading eco-friendly elements to their homes. This Wall Street Journal article details several different types of credits available this year and next year for eco-upgrades. For starters, there's a federal credit of up to $1,500 available for switching to energy-efficient doors, windows, air-conditioning, insulation, water heaters and roofing. The credit is good for 30% of the purchase price, up to the $1,500 cap if spread between this year and next year. It's only good for your primary home, so if you have a vacation home you planned to trick out, that still has to come out of your own pocket. The Department of Energy has a webpage with more details about the credit program.
Another, larger credit program, also administered by the Department of Energy, lets homeowners deduct up to 30% of the cost of fuel cells, solar cells or solar water heaters, wind energy and geothermal energy generators. These credits have no cap and are in place until 2016. Also, all but the fuel-cell credit can be used for non-primary residences.
Two caveats to be aware of, the Journal article cautions: The items for which homeowners file for a credit can only be used inside a house, so implements to heat a pool or hot tub don't qualify. Also, keep in mind that some of these credits just let you count the cost of the new items, not their installation. The details of which items qualify for installation credits are available on the Energy Department's website. There are also variations to the rules if you're building a new house as opposed to upgrading an existing one.
To consumers who are overwhelmed by the possibilities, the Journal article offers a bit of sound advice: Start small. Upgrading windows and insulation is almost always a good investment, even without the added incentive of the tax credit. These two relatively quick fixes can even be tackled by a relatively handy amateur.
Reader Comments (Page 1 of 1)
10-14-2009 @ 5:43AM
MyKisa said...
....with Fair Tax, there would be unstop growth....Fair Tax.Org
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10-16-2009 @ 7:08PM
MC said...
It is amazing to see the results of an energy audit and then realize the amount of money is being wasted by the average consumer due to the inefficiencies of their buildings envelope vs. the short time it takes to realize a savings after a properly executed retrofit. A quick payback of initial investment, and then a continued savings for the consumer that will last from the moment of time at which the project has been completed, and for potentially generations (or, for at least the life of the building structure).
It is also refreshing to see that due to the interest by the consumer for such services, technological advances have been made making such a retrofit much easier, and less costly for the consumer. Companies with a mission statement like that of http://www.americangreengroup.com/ are backing up the "Green Movement" with innovative products and also the training necessary to implement such a movement to energy efficiency.
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10-16-2009 @ 11:07AM
mark said...
Anything apartment renters can do to earn a tax credit.
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10-16-2009 @ 11:05AM
Mark Pannell said...
The government websites about the tax credits are intentionally confusing. When my wife and I were shopping for a new front door, the guy at Lowe's told us to look at http://myenergytax.com. It looks like the site and video were made by a door company, but it's much easier to understand how it works than the Department of Energy site.
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10-16-2009 @ 6:55PM
Bailey Watkins said...
The unemployment rate would go down tremendously if we handled this problem like we do our military and put people in a civil service job building wind, and solar energy projects. Manufacturing and installing wind mills and solar panels would put millions to work right now; strategically placing them in area's that would benefit us; plus giving a fair wage, hospitalization and a retirement plan. Somehow we missed the boat on this chance years ago. We are not only at war with the people we are buying oil from, we are getting screwed over by people not wanting to pay taxes and invest back into our country. Other countries are making money here and spending it in their own countries. Something is desperately wrong with the system we have now. Where are all the people that love this country? And want to see it do good? Plus are willing to invest and help?
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