If you have been considering some home improvement projects to help increase the energy efficiency of your home and you need a little “push” to get started, the federal government is offering some valuable incentives to help move those jobs to the top of your “to do” list.
Thanks to Federal Tax Credits for Energy Efficiency, when you upgrade your current home to insulate it against extreme temperatures or installing new energy efficient products, you can get back 30% of your costs (up to $1,500) on replacing windows and doors, adding insulation, replacing your roof, updating your HVAC (heating, ventilation and air conditioning) system, replace your non-solar water heater or add a biomass stove. Installation costs for HVAC systems, biomass stoves and water heaters are also eligible for the credit. Installation costs for windows, doors, insulation and roofs are not. These credits are for existing homes only and apply to improvements that are made between January 1, 2009 and December 31, 2010.
For those who want to go a little more green on existing homes and new construction, tax credits are also available to recoup 30% of your costs (with no upper limit) on the installation of geothermal heat pumps, solar panels, solar water heaters, small wind exchange systems (windmills) and fuel cells. Installation costs for all of these systems are eligible for the credit as long as improvements are completed by December 31, 2016.
Please note that even though products endorsed by the government with an ENERGY STAR rating are always recommended when making upgrades to your home, not all ENERGY STAR products qualify for the tax credit. Be sure to do a little homework and/or get professional assistance from builders or home improvement professionals to make sure the products you are installing are eligible for credit. You can also find more information on tax credit specifications and products by visiting the Federal Tax Credits for Energy Efficiency webpage at www.energystar.gov/taxcredits.
The site can answer questions about the specific products that qualify for tax credits and provides answers to Frequently Asked Questions. It also lets you know where you can find the tax form you’ll need to submit to qualify for the rebate.
If you’d like to take advantage of these tax credits and need some financial assistance up front for projects you are considering for your current home, don’t forget that you can use the value you’ve built up in your home to apply for a home equity line of credit (HELOC) or home equity loan.
For additional information on how we can help you get the most value on your home improvement projects, feel free to give us a call at 757.569.6000, or just drop by any convenient branch to speak with a Mortgage Specialist. You can also visit our website at www.broncofcu.com to check out our current rates.
