If you are a homeowner with an aging heating or cooling system, poor insulation, old exterior windows and doors or are in need of a new roof, this may be the year to make those repairs. In effect through 2007 are federal tax credits available to homeowners for certain energy efficient improvements made on your home.
In the past, many homeowners opted for less expensive and less efficient units to receive the cost savings up front. The increased cost of installing more energy efficient utilities was not seen as beneficial in the near term. As home energy bills continue to increase in double-digit increments, many are rethinking the purchase of less efficient systems.
The new federal incentives come in the form of tax credits. This means you can receive returns on your new high efficiency improvements more quickly. Important to note is the requirement that these improvements be Energy Star certified products in order to qualify.
According to the Energy Star Web site, tax credits apply to (but are not limited to) the following:
For existing homes, these provisions offer “cost-based incentives of 10 percent of the amount expended by the taxpayer for ‘Qualified Energy Efficiency Improvements’ and up to a maximum credit limit of $500”, according to the Energy Star site.
A full chart of eligible home improvements that qualify for these energy efficient related tax credits is at energystar.gov/index.cfm?c=products.pr_tax_credits#chart
Wisconsin legislators recently passed a similarly inspired energy efficiency policy, Wisconsin Energy Policy Act 141, but details of the additional incentives, however, have not yet been defined.
The types of new energy efficient technology available to homeowners can be seen on “The Energy Efficient, Renewable Home” fact sheet, at focusonenergy.org and the Partnership For Advancing Technology In Housing’s (PATH) Web site at toolbase.org.
Remember to consult with a Certified Professional Tax Accountant to insure these new tax credits apply to you, and always hire a qualified, licensed contractor trained and experienced with installing newer energy efficient systems.
Dan Buttery is a professional home inspector and owner of Argus Inspections in Milwaukee.
In the past, many homeowners opted for less expensive and less efficient units to receive the cost savings up front. The increased cost of installing more energy efficient utilities was not seen as beneficial in the near term. As home energy bills continue to increase in double-digit increments, many are rethinking the purchase of less efficient systems.
The new federal incentives come in the form of tax credits. This means you can receive returns on your new high efficiency improvements more quickly. Important to note is the requirement that these improvements be Energy Star certified products in order to qualify.
According to the Energy Star Web site, tax credits apply to (but are not limited to) the following:
- Insulation designed to reduce heat loss or gain.
- Exterior window and doors (which must meet certification requirements).
- Some types of roofing material designed to reduce heat gain.
- Natural gas, propane or oil furnace or hot water boiler with Annual Fuel Utilization Efficiency (AFUE) of 95 percent or greater.
- Some geothermal heat pumps.
- Natural gas, propane or oil water heaters with Energy Factor (EF) of .80 or greater.
For existing homes, these provisions offer “cost-based incentives of 10 percent of the amount expended by the taxpayer for ‘Qualified Energy Efficiency Improvements’ and up to a maximum credit limit of $500”, according to the Energy Star site.
A full chart of eligible home improvements that qualify for these energy efficient related tax credits is at energystar.gov/index.cfm?c=products.pr_tax_credits#chart
Wisconsin legislators recently passed a similarly inspired energy efficiency policy, Wisconsin Energy Policy Act 141, but details of the additional incentives, however, have not yet been defined.
The types of new energy efficient technology available to homeowners can be seen on “The Energy Efficient, Renewable Home” fact sheet, at focusonenergy.org and the Partnership For Advancing Technology In Housing’s (PATH) Web site at toolbase.org.
Remember to consult with a Certified Professional Tax Accountant to insure these new tax credits apply to you, and always hire a qualified, licensed contractor trained and experienced with installing newer energy efficient systems.
Dan Buttery is a professional home inspector and owner of Argus Inspections in Milwaukee.
