You can add insulation, put in a new roof, upgrade your heating and air conditioning, or replace doors and windows and get money back on your taxes.
Over the rest of this year and all of next year, you have the opportunity to improve the resale value of your home, make your home more comfortable, save some money on your utility bills, and even get some money back from the government. Not a bad deal!
Here’s how it works. Simply replace old inefficient equipment with new high efficiency equipment and get money back on your taxes. If you install new heating and/or air conditioning, insulation, roof, non-solar water heating, or windows and doors on your existing home that you use as your principal residence, you can get a tax credit of 30% of the cost (up to a maximum credit of $1500) when you file your taxes. This is a tax credit, not an income deduction, so you get all of that back.
If you install geothermal heat pumps, small wind turbines, or solar systems you can get 30% back with no upper limit. New homes and second homes also qualify for this credit.
I have an old farmhouse that is over 100 years old. The windows were single pane and some of them were six feet tall. We tried putting up storm windows and caulking and sealing around the windows, but we could still feel the cold air. We went down to Lowe’s and ordered seven new windows and a new front door. Lowe’s just finished the installation this week and we can already feel the difference. Our tax credit will be over $500 next spring.
Next year I plan to look at adding some insulation, since the program runs to the end of next year and I am nowhere close to my $1500 cap.
Although my windows and doors only qualified for credits on the material, some systems, like heating also include the installation costs toward the credits. Check out this website for more details.
This Article was written by my friend, by James Cartwright in December 2009. Jim is a Certified Energy manager (CEM) and an active member of the Association of Energy Engineers.