For me, one of the neatest things about living in the Avent West community has been observing the transformation of homes through remodel, refurbishment and even reconstruction. In fact, the same could be said about the entire city of Raleigh as it certainly looks a bit different today than when I first arrived in 1986.
Over the last decade or so, the federal government has enacted legislation designed to subsidize energy efficiency and conservation improvements. The American Recovery and Reinvestment Act of 2009 signed into law by President Obama provides another opportunity for homeowners looking to “go green” while also saving on the monthly utilities.
So if you are thinking about tackling that home improvement project keep in mind that the government may cover a portion of the cost via qualifying tax credits. Remember that a tax credit reduces your tax liability dollar-for-dollar. There are two main credits available to homeowners and are summarized below directly from the U.S. Dept. of Energy’s website: home energy efficiency improvement tax credits and residential renewable energy tax credits.
Home Energy Efficiency Improvement Tax Credits
Consumers who purchase and install specific products, such as energy-efficient windows, insulation, doors, roofs, and heating and cooling equipment in existing homes can receive a tax credit for 30% of the cost, up to $1,500, for improvements “placed in service” starting January 1, 2009, through December 31, 2010. See EnergyStar.gov for a complete summary of energy efficiency tax credits available to consumers.
Residential Renewable Energy Tax Credits
Consumers who install solar energy systems (including solar water heating and solar electric systems), small wind systems, geothermal heat pumps, and residential fuel cell and microturbine systems can receive a 30% tax credit for systems placed in service before December 31, 2016; the previous tax credit cap no longer applies.
In addition to the products listed above, qualifying water heaters (non-solar) and stoves that burn biomass fuels are eligible for the $1,500 Home Energy Efficiency Improvement credit.
The state of North Carolina will also kick in a credit toward the Renewable Energy Credit. See the details at North Carolina Renewable Energy Tax Credit
There are many considerations when you plan a home improvement project. As we all know, living in a fifty-year old ranch or split level requires attention to more than just detail. When the decision has been made to spend thousands of dollars on new windows or HVAC we primarily want to make sure that we are getting a fair deal and that everything works properly.
However, Uncle Sam wants you to put energy efficiency at the top of your list as well. So much so that he is willing to put some money back in your pocket. Also, you’ll feel better about being green and we all get to see another transformation take place.
