Tax Credits Good Through 2010

Many home owners might get confused as to the timing of various tax credits.

• New home owner tax credits extended through April 2010
• A new tax credit for existing home buyers is also in place through April 2010
• Home energy tax credits are good through December 2010!

Tax credits are good for you and good for the environment (more about global warming). Early in 2009, new home energy tax credits were enacted … and they remain good through year end 2010. To help those who may not have taken advantage ($1,500 once during 2009 to 2010), here is a recap of the many choices you have for saving energy in the coming years.

Home Energy Eligibility through 2010

These tax credits are available for existing homes and must be your principal residence. There are different tax incentives for new construction. Make sure you research which products are eligible for these tax credits, starting at the Energy Star web site.

• 

  Attic Insulation

  Heating, Ventilating and Air Conditioning - includes central air conditioning, air source heat pumps and selected furnaces and hot water boilers.

• Insulation - is one of the most cost-effective home improvements you can do. The cost (materials only) of insulation that meets International Energy Conservation Code (IECC) standards for 2009 is eligible for this tax credit.

• Roofing - because better products reflect more of the sun’s rays, lowering the roof surface temperature and decreasing the amount of heat transferred into your home. Tax credits exist for ENERGY STAR metal roofs with “pigmented coatings” and ENERGY STAR asphalt roofs with “cooling granules”.

• Water heaters - can use 14%–25% of the energy consumed in your home. New models that achieve specified standards are eligible for the tax credit, both the cost of the hot water heater and installation.

• Windows, doors and skylights - that in combination, deliver a U-factor and SHGC of 0.30 or below, and meet the are eligible for the tax credit (materials ONLY). A less expensive approach to replacing old windows/doors, is to use storm doors or windows to improve energy efficiency.

• Geothermal heat pumps - are similar to ordinary heat pumps, but use the ground instead of outside air to provide heating, air conditioning and, in most cases, hot water. By using the earth’s natural heat, they are one of the most efficient and comfortable heating and cooling technologies currently available.

• Wind turbines - collect kinetic energy from the wind and converts it to electricity that is compatible with a home’s electrical system. Eligible turbines must have a nameplate capacity of no more than 100 kilowatts.

• Solar energy systems - come in a wide variety of designs which include a collector and storage tank. They all use the sun’s thermal energy to heat water.

We will start to see more energy efficient products coming to the marketplace (earlier article) as energy costs increase and government programs drive more research and development for fuel efficiency.